"Expensive" implies quality
Last week in the news there was an interesting study confirming what we already suspect: Expensive medicine is perceived as more effective.
People who were told that a pill cost $2.50 got more pain relief from a shock to their wrist, than did those who were told that the pill cost only 10 cents. In reality, both groups of subjects received the same pill, which contained no pain medicine at all. The pill was just a placebo (sugar pill.)
A few months ago another study showed that people sipping wine which they thought cost $45, reported that it tasted better than wine that they were told cost $5.
Moreover, brain imaging reflected more activity in the pleasure centers when the people drank the "expensive" wine - even though both products were identical!
These research results are not surprising. From haircuts, to cosmetics, to watches, to cars - in the mind of the consumer, higher price is associated with better quality. And expectation of quality affects one's experience of satisfaction.
What this means for your professional business:
Even in these tough economic times, if you are a professional, think twice before slashing your fees.
There is still a need for your services and products. And when money is tight, your potential clients and customers don't want to waste it. More important than ever is their confidence that what they are paying for is indeed going to help them.
Instead of lowering your prices, increase your perceived value. Here are some tips:
- Be extra responsive - e.g., return phone calls and emails within an hour.
- Offer extra convenience - e.g., toll-free phone number, baby-sitting services for your in-person clients, evening office hours, stamped self-adressed envelopes for return mail.
- Give something free, which is related to your paid service or product - e.g., book (yours or someone else's), CD, DVD, pedometer (eg., for clients you are coaching to improve their life style.) These items cost a few bucks, but can greatly enhance your perceived value.
