Maximizing Value: How to Leverage Psychology to Raise Your Prices
Clients often ask me, “How can we charge more?” The answer is simple:
Make the value you offer crystal clear.
In economics this is called value exchange.
Many brands provide the value, but they don’t communicate it clearly, consistently, or in language that resonates with their buyer. So how can we use principles from marketing psychology and behavioral science to nail our value messaging so we can charge more?
How to understand what value means for your customer (so you know if you’re delivering it)
When it comes to figuring out if something is worth the price, the process is actually more emotional and “irrational” than you’d expect (even in B2B).
Irrational Value Assessment says that we don’t really know how much something is supposed to cost. Instead we make assumptions based on context clues and how they make us feel, to figure it out.
A large part of deciding whether a product or service is “worth” the price is a buyer’s definition of value — how…
