What’s better value? Free to air tv compared with a subscription to a movie channel, or a subscription to a movie channel compared with a night out at the cinema?
In this VLOG, Grant explains that there is no such thing as absolute value and, as with your own products or services, it all matters on what your reference points are and the way that you frame it.
The waiter goes over to a guy in a restaurant. He says to him “We’ve got two specials this evening sir, we’ve got fish and we’ve got chicken.” And the gentleman says; “In that case I’ll have the fish” and the waiter says; “Oh, sorry sir, I forgot, we’ve also got a beef option” and the person says; “Well, in that case I’ll have the chicken.”
On the face of it, that conversation makes no sense whatsoever. But it does if you understand that human beings don’t deal in absolutes, they deal in relatives.
Therefore, the fish dish looks healthy compared with the chicken, but once you introduce a beef option, the chicken, in relative terms, then becomes a healthy option.
This matters with your own products and services because the way that you frame it, will change how someone perceives the relative value of what you’re offering.
For example, a subscription to a movie channel might seem relatively expensive if it’s compared with free to air alternatives. If, however, it’s compared with actually going to the cinema then, then in relative terms, it might seem good value.
The cost of a magazine subscription may seem expensive when looking at the total amount, but if it’s framed that it’s the same cost as a cup of coffee per week, suddenly it looks affordable.
There’s no such thing as absolute value. So in thinking about presenting your products or services, think about how you frame them, what your reference points are, and how relatively that stacks up in the customer’s mind. In so doing, you can make your offering a lot more attractive.
So now we’ve established that, where’s my chicken?
There may be small changes to the spoken word in this transcript in order to facilitate the readability of the written English