When competitors cut prices, raise perceived value instead. Frame your product through emotional, social, and philosophical benefits—like an e-bike as a way to reignite exercise, lead your community, and help the environment. These intangible benefits cost nothing to add but let you charge more.
Welcome you to another episode. You will be learning some business tips that are designed to help you to get more clients, grow your business, make more money, and save you frustration. Something that advances your business today. Now, how in the world can you charge more for your product, especially if you have competition that's underpricing you in the market? And you're feeling this pressure to go lower and lower and lower, and that can really kill your business. It kills your profit margins, and it just devalues what it is that you're trying to sell. So people are asking all the time, how can I charge a luxury price for a luxury item in a competitive market? And the key is to add more value. And I'm not even talking about adding more physical stuff, so you could add more things and you could bundle things. No, I'm actually talking about sell what we call below the line, other things that people get with your product. Recently, one of my clients shared his wonderful experience. He was looking at e-bikes, and you know those modern electric bicycles, and an e-bike is kind of expensive that can cost a lot of money. I can look at that and say, okay, I can pay a big amount of money for an e-bike, but let's say the salesperson actually added more value to it. Let's say they added emotional value. They said, you know, you will actually fall in love with exercise again because, you know, it's a lot easier. You can go a lot further. You can go a lot faster. You will fall in love with the exercise again. Okay, now you're selling me an e-bike and you're selling me a love for exercise. How much do you think a love for exercise is actually worth? How much did it cost you to sell me a love for exercise? Nothing. It's just words, but you added value to it, right? So that is that emotional thing. So what's the emotional thing that you can actually add value with to your product? And then you look at the social thing, right? Add social value. And the social value would be, you know, you are the leader of the pack and people will see you as somebody who is an early adopter and something like that. There's a tribal mechanism that goes into place. When I try to buy something, I can get more respected amongst my friends and other people. Is there a social component to what you're actually offering? Add social value. And then the big one, philosophical value. And what are the bigger stakes that you are offering? I could be somebody who saves the environment. If I stop driving my car to work and actually take my e-bike to work, I can save the environment. People will respect me and I will fall in love with exercise again. Guess what you just did to the perceived value of a luxurious e-bike? You just made it a premium product and you did not even add anything to it except for words. What we are talking about is framing the perspective that our customer has. So they see the product and they see the emotional, social, and philosophical value that might also come with that product. That's how you keep raising your prices and that's how you beat the competition. Because even though they are selling the same thing, they are not taking the time to frame their product with social component, philosophical component, and emotional components. They're just saying it's a bike. You're going to beat them in the marketplace and going to do it without lowering your price. Add value using words. Really powerful. That's it for now. If you like it, share this with someone who you think can find helpful. Thank you for watching.
