Quote:
Originally Posted by impaul99  One of my coaches once told me a story of a woman who was doing a weekend seminar for $300. She wanted to get more attendence. She was instructed to raise her prices to $1250. More people showed up and she made way more money.
Why? Because her target audience couldn't be bothered showing up to a "$300 seminar". It's a waste of a weekend. But a $1250 is worth it.
Isn't that insane? They have to pay more money! And more show up! |
That's still the issue regarding the mindset of the buyers. Some buyers think higher price tag = more value/quality which is completely wrong, but what are you going to do about it.. You have to match the mindset of your buyer (which is why it is so important to know your target market).
Exchange value is always in the eye of the buyer. The seller can do things to make his offer more compelling by appealing to the buyer's mindset.
I sometimes question why Steve's articles are so popular/valuable since he really isn't saying anything new, but I guess the way he says it appeals to some people... We could argue if he is really creating value or not, but as long as people are interested, such a debate is pointless.
