Would you pay £3.00 for a can of Coke? Your instant answer may be ‘No Way!’ but in this vlog, Grant explains why you may willingly hand over the £3.00 and how that relates to your own business.
Would you pay £3.00 for a can of Coke?
Of course your instant answer is “No Way!”
But let me give you this scenario. You’ve been on the beach for a few hours and it’s a good 15 minute walk to a shop or to your hotel and walking down the beach is a guy with a freezer with really cold cans of Coke for £3.00 each… now you’re thinking about it?
The point is, context is everything because it changes our perception.
In a sales situation, context can affect price.
A small business owner may say to you, how much is your consultancy rate? You could just answer £2000 a day, which may seem expensive, but if you précis it by saying, ‘well, when I work with big corporates, I charge £3,500 a day, but for smaller businesses like yours, I charge £2,000 a day’ in relation to the £3,500, that £2000 just feels a little bit cheaper.
Similarly, 30p or 40p for a cup of coffee at home, sounds a lot if you compare it with a freeze dried version. But that’s not what Nespresso do. They compare those captures with having a coffee out and when you are charged £2.00 or £3.00 for that, suddenly that pod for 30p or 40p sounds relatively cheap.
So bear in mind, your value proposition does not exist on its own. It’s always relative to other options that a customer has. And, therefore, if you can give them a good frame of reference, it can seem much more appealing than otherwise it will.
And now, if you’ll excuse me, I’m off for my £25 pint of beer… and you should see the sea view!