It’s not about pricing, it’s about perceived value

I work for a company that sells a lifetime holiday product. We often get questioned about the value of our product. The sales process is getting harder and harder every year. It seems like the only tactic that works is to give a discount.

It gets me thinking. Does our product have poor value? How can we prove our product value? And most importantly, how do our potential customers create the perceived value of the product?

I don’t have the answers to the first two questions (yet). But, my assumption that could answer the third question is our potential customers compare our product value with the discounted holiday offers in the market. Online Travel Agents (OTAs) have done a great job in creating the perception that doing business with them offers a great value. And, it could be true but it’s not always the case.

People’s brain is lazy by nature. People always choose the easiest path to get something. If we want to prove our point, we have to come up with a way to show customers that their perception is not accurate.

In our case, the challenge is we need to find a way to overcome the time gap. Our product offers a lifetime holiday, while customer’s mind looks only at a short term horizon (many compare prices on OTA websites). Our sales and marketing strategy should start with this thought.

Apivut

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