$1,000 car vs $80,000 car
Can you picture them in your mind?
Just by saying the price do you have an instant perception of the look and feel of the vehicle? Of course you do.
The $1,000 car is a multi-colored mistake. Body filler, scratches, torn seats and no muffler.
The $80,000 car drives like butter. Gliding down the highway in a luxury cocoon.
What if I told you the $80,000 car was available today for only $1,000?
I’m a member of one of those Facebook Garage Sale groups. This morning someone posted an ad for a brand new Louis Vuitton purse. Still in the packaging with the certificate and everything. Price? $100.
Yep, only $100 dollars.
If you think like I do (and almost everyone in the FB group it was posted in) you immediately go to “what’s the catch?”
Most people accused the woman of outright lying. It’s a scam. No one sells a real Louis Vuitton for only $100.
Of course she had a “reasonable” explanation….”it belongs to my sister and she needs to move this weekend. She needs the money to make the move.”
Which begs the question…why doesn’t she ask for $1000? That’s still a great deal.
Now back to business….
What does your price say about you?
Is your product or service priced so cheap that people question if it can really do what it says?
Pricing too low isn’t just about leaving money on the table – it’s also about selling anything at all. People want to feel good about their purchase. They want to feel safe. They don’t want to second-guess themselves that they didn’t hire an expert or they bought something that will break in a week.
If they don’t get these feelings from your price, they’ll move on.
Back in my contracting days, I hired a lot of subs. There were many times I didn’t hire someone because of price. But as many times as the price was too high, I didn’t hire someone because the price was too low.
I knew what things should cost. I knew if I hired the guy who underbid the project that one of several things would happen.
1 – He would realize his mistake and attempt to nickel and dime me with extras until his price was what it should have been in the first place.
2 – He wouldn’t be able to spend the time he should because he would need to get to the next job and make some money. Thereby doing a crappy job.
3 – He was planning on cutting corners with cheap materials or bad practices.
None of these appealed to me, so I learned to hire the guy who priced the job right in the first place. He was the guy who knew what he was doing. He was professional and reliable.
Does your price exude confidence? Or does your price leave people wondering “What’s the catch?”