Fee follows value, until....
Many business owners believe that the fee or price they are able to charge for their goods and services follows value. In other words, if you give more value you can justifiably charge more. However when your business becomes a ‘brand’, then the lines cross and at that point, value follows fee.I said to the optometrist that I need some sunglasses for fishing. I am looking to spend about £25. The man says “Well, these Polaroid’s are what you need to spot the fish.” I figure the price could now be nearer £40.
The optometrist says, “These wraparounds will give you better fish spotting vision because they cut the sun out altogether.” I’m thinking that the price must now be £50 or more.
Then he says, “Why don’t you take these bi-focal, polarised, wraparounds away for the weekend. You can use these for tying hooks so you don’t have to change your glasses every five minutes.”
On the drive out to the river I find that I don’t need two pairs of glasses, one for the sun and one for the map, in the car either. Amazing. So I go back to the practice the following week and get a pair. Price £120.
When we develop genuine expertise that is of value to customers or clients, then fee or price becomes less and less important in our decision to buy.
Labels: understanding your brand and how it works
posted by Tim @ 4:38 AM
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