"Perceived Value?"

I just got in an email from one of the marketing folks, and it is similar to many that I get on a daily basis.

Here it is...then I will make a comment.

"Perceived Value - The Art of Making Your Product Look Like It's Worth 20 Times What You Are Charging For It"

Here's another technique that is perfect for Internet marketing.

Increasing the perceived value is easily done by simply adding bonuses that cost you little or nothing to add and create a 'package deal'!

Let's say you are selling a book on getting to the top of search engines....

You could add 2 or 3 web marketing reports you found as bonuses. You could add some free software you discovered that made your job 100 times easier, you could add this e-book you're reading now and so on.

Write down every benefit the reader will get from theses bonuses and make a bulleted list of them!

This can make your $29.95 book seem like it's worth $229.95!

Look for things that can go along with your product as bonuses but yet cost you very little to produce. With a little effort you can easily make your current product seem like it's worth 20 times what you are charging for it.

It will actually be worth more than you are charging if you put some good bonuses together. And that's great - it cost you nothing extra and will blow your sales through the roof. Everybody wins.

I am probably old fashioned, but I just had to get this off my chest.

I feel the concept of "perceived value" is being overdone.

What happened to actually giving real value versus "perceived" value.

It seems that in the end, people will (or maybe they already have) become so "innoculated" to sales pitches, because like advertising, it just isn't trusted by the majority of folks anymore.

Maybe I'm not "getting it".

Oh well...

I feel better now.

Regards,
John Palma


Latest February Newsletter Now Available - FREE

Hi John

It's a good point you bring up. I've been in
marketing since I was a lad and the one thing
that I know to be true is this:

Perception is reality.

All those bonuses don't aid perceived value for
the majority of people. People will perceive them
as not being of much value and buy (or not buy)
accordingly.

Adding a bonus only adds value if the prospect
perceives it to add value. That's where a lot of
marketers go wrong. You need to be able to 'talk'
with your prospect and establish what is
perceived as valuable to him.

The computers in my office have just caused me a
lot of problems by crashing and burning. I have
never bothered too much about backing up my files
before.

Before my problems I wouldn't have paid $100 for
a CD burner.

Now I'd be quite happy to pay $1,000 for a CD burner.
That's my perception now.

If you've never had a computer virus before, you
might not perceive much value in an anti-virus
program. After you've been infected the program
is all of a sudden perceived as much more
valuable to you. And you're happy to pay more.

The only reality is that which you perceive.

Hope that helps John.

Regards

Brendon

....with "Information" products....is to offer "Bonuses" with HIGHER "Perceived Value" than the main product.

Potential customers see the "High Perceived Value" of the Bonuses and feel "compelled" to order.

I once failed to include a certain "FREE Bonus" in one of my programs and people got all "pissy", even though I explained it was "coming in a few weeks".

They wanted the "Bonus" more than the "main" product so...I made the "Bonus" the main program in my next sales material.

Don Alm

> I just got in an email from one of the
> marketing folks, and it is similar to many
> that I get on a daily basis.

> Here it is...then I will make a comment.

> "Perceived Value - The Art of Making
> Your Product Look Like It's Worth 20 Times
> What You Are Charging For It"

> Here's another technique that is perfect for
> Internet marketing.

> Increasing the perceived value is easily
> done by simply adding bonuses that cost you
> little or nothing to add and create a
> 'package deal'!

> Let's say you are selling a book on getting
> to the top of search engines....

> You could add 2 or 3 web marketing reports
> you found as bonuses. You could add some
> free software you discovered that made your
> job 100 times easier, you could add this
> e-book you're reading now and so on.

> Write down every benefit the reader will get
> from theses bonuses and make a bulleted list
> of them!

> This can make your $29.95 book seem like
> it's worth $229.95!

> Look for things that can go along with your
> product as bonuses but yet cost you very
> little to produce. With a little effort you
> can easily make your current product seem
> like it's worth 20 times what you are
> charging for it.

> It will actually be worth more than you are
> charging if you put some good bonuses
> together. And that's great - it cost you
> nothing extra and will blow your sales
> through the roof. Everybody wins.

> I am probably old fashioned, but I just had
> to get this off my chest.

> I feel the concept of "perceived
> value" is being overdone.

> What happened to actually giving real value
> versus "perceived" value.

> It seems that in the end, people will (or
> maybe they already have) become so
> "innoculated" to sales pitches,
> because like advertising, it just isn't
> trusted by the majority of folks anymore.

> Maybe I'm not "getting it".

> Oh well...

> I feel better now.

> Regards,
> John Palma




$800 A Day Removing Oil Stains from Parking Lots and Driveways

> ....with "Information"
> products....is to offer "Bonuses"
> with HIGHER "Perceived Value" than
> the main product.

> Potential customers see the "High
> Perceived Value" of the Bonuses and
> feel "compelled" to order.

> I once failed to include a certain
> "FREE Bonus" in one of my programs
> and people got all "pissy", even
> though I explained it was "coming in a
> few weeks".

> They wanted the "Bonus" more than
> the "main" product so...I made the
> "Bonus" the main program in my
> next sales material.

> Don Alm
And where do you find all these "wonderful toys"? I am new to the internet and have thought about starting a e-magazine, but don't have the faintest idea how to get started. "Kin ya help me?"




Cajun Country Candies

Hello: I was selling my products for $9.88, had it set up so that you could process a credit card almost instantly as all the experts say you should...I was delivering my products digitally as PDF's...My guarantee stated if for any reason you didn't like the product you could get your money back, no time limit and no questions asked!...Well of course, people would download the product, print it out and then ask for their money back or just do a chargeback with their credit card company...I'm sure we all realize this is simple 'theft'!...

Here is what I decided to do: I eliminated the 'buy' buttons that linked to 2checkout.com and done away with credit card processing that was taking more than a dollar of my price...As a test, I eliminated all reference to price and posted a guarantee that stated: "Down load the report, read it, inspect it and try it out...If you find the information is useful and informative pay me what 'YOU' think it is worth!...If you don't find it useful, you owe me nothing!...How is THAT for a guarantee?"...

Here are the results of the test: Almost all who downloaded the report sent me either $20 or $25!...Apparently they thought more of the product than I did!...Now I post the same guarantee and simply state that $20 is my average donation...

I guess the moral here is that if your product is REALLY good, you don't have to 'hype' it and the market will seek it's own level...(Seems as if I remember reading that somewhere)...My sales have doubled by my doing this!...

I look forward to this groups' feedback....Rooster

I just got in an email from one of the
> marketing folks, and it is similar to many
> that I get on a daily basis.

> Here it is...then I will make a comment.

> "Perceived Value - The Art of Making
> Your Product Look Like It's Worth 20 Times
> What You Are Charging For It"

> Here's another technique that is perfect for
> Internet marketing.

> Increasing the perceived value is easily
> done by simply adding bonuses that cost you
> little or nothing to add and create a
> 'package deal'!

> Let's say you are selling a book on getting
> to the top of search engines....

> You could add 2 or 3 web marketing reports
> you found as bonuses. You could add some
> free software you discovered that made your
> job 100 times easier, you could add this
> e-book you're reading now and so on.

> Write down every benefit the reader will get
> from theses bonuses and make a bulleted list
> of them!

> This can make your $29.95 book seem like
> it's worth $229.95!

> Look for things that can go along with your
> product as bonuses but yet cost you very
> little to produce. With a little effort you
> can easily make your current product seem
> like it's worth 20 times what you are
> charging for it.

> It will actually be worth more than you are
> charging if you put some good bonuses
> together. And that's great - it cost you
> nothing extra and will blow your sales
> through the roof. Everybody wins.

> I am probably old fashioned, but I just had
> to get this off my chest.

> I feel the concept of "perceived
> value" is being overdone.

> What happened to actually giving real value
> versus "perceived" value.

> It seems that in the end, people will (or
> maybe they already have) become so
> "innoculated" to sales pitches,
> because like advertising, it just isn't
> trusted by the majority of folks anymore.

> Maybe I'm not "getting it".

> Oh well...

> I feel better now.

> Regards,
> John Palma




"Rocking Chair Wisdom"

> Here is what I decided to do: I eliminated
> the 'buy' buttons that linked to
> 2checkout.com and done away with credit card
> processing that was taking more than a
> dollar of my price...As a test, I eliminated
> all reference to price and posted a
> guarantee that stated: "Down load the
> report, read it, inspect it and try it
> out...If you find the information is useful
> and informative pay me what 'YOU' think it
> is worth!...If you don't find it useful, you
> owe me nothing!...How is THAT for a
> guarantee?"...

Rooster,

This is a terrific example for my Marketing Minute newsletter (I will get in touch privately for more details)!

One lesson here is that many of us undervalue our products and our expertise.

Key to Rooster getting those payments is something he didn't mention: If you go to his Web site, it's clear that you can't download his reports anonymously. You must request them in a personal email, to which he replies personally, with the report attached.

Note that Rooster's web site sets himself up as a real person, with his photo and his bio and moreover, to request this no-risk trial and a pay-what-you-like booklet, you must request it in a manner which feels like the Internet equivalent of face-to-face. People who don't really want the information or who have no intention of paying anything won't request it in this situation, I believe.

Thus he weeds out dishonest people and sets up a situation where only a complete creep who did see the value in what he requested would not pay something.

It's the equivalent of setting up a booth at a county fair, sitting below a sign that says, "Have a slice of my pie! How much? Pay what you think it's worth, after you eat it." Who could eat it and enjoy it and then not pay what it was worth?!

My prediction is that if Rooster changed his site so that people could download the files without requesting them, his voluntary payment rate would go way down.

Anyone want to test this?

Marcia Yudkin


Read this week's tip on creative marketing, free!

Rooster and All,
I can't tell you what a great thing you have done for all of us. That took guts and was the greatest way to build confidence. The fact that it worked so well restores our hope that humanity is not completely lost in hype copy. Like others, I am becoming jaded to the average sales pitch, they all sound the same and you know they have some high $ back end they will try and convince you to buy, not to mention the boot camp or seminar. And we all thought that the TV infomercials were bad, just look at where internet marketing has gone.
A very wise gentleman (Michael Ross) recently advised me to tell it like it is from an honest, down-to-earth, point of view. I knew that was great advice and Rooster's experiance helps prove that.
Let this be a reminder not to get too cynical about all the hype and scams. There are still a lot of really great, honest, people out there. IMHO they still out number the other kind of folks, and that is really good news!
Just think how this forum and other good ones like it save so many people from falling victim to all the junk out there.
Thanks to Michael, and all the wise folks who share thier wisdom here.

Dave Horn




Too Good To Be True? Decide for Yourself

dno
> Rooster and All,
> I can't tell you what a great thing you have
> done for all of us. That took guts and was
> the greatest way to build confidence. The
> fact that it worked so well restores our
> hope that humanity is not completely lost in
> hype copy. Like others, I am becoming jaded
> to the average sales pitch, they all sound
> the same and you know they have some high $
> back end they will try and convince you to
> buy, not to mention the boot camp or
> seminar. And we all thought that the TV
> infomercials were bad, just look at where
> internet marketing has gone.
> A very wise gentleman (Michael Ross)
> recently advised me to tell it like it is
> from an honest, down-to-earth, point of
> view. I knew that was great advice and
> Rooster's experiance helps prove that.
> Let this be a reminder not to get too
> cynical about all the hype and scams. There
> are still a lot of really great, honest,
> people out there. IMHO they still out number
> the other kind of folks, and that is really
> good news!
> Just think how this forum and other good
> ones like it save so many people from
> falling victim to all the junk out there.
> Thanks to Michael, and all the wise folks
> who share thier wisdom here.

> Dave Horn

Hey Rooster!

Great to see you again! And congratulations on discovering the model you've shared here. I visited your site and it's a joy to see what you've done :--)

A couple Januarys ago, I attended (as a participant) a weekend workshop facilitated by a wonderful guy named Mark LeBlanc. Mark's company is www.SmallBusinessSuccess.com and is based near me here in southern California. His weekend workshop is called Achievers Circle, and is kept at a maximum of 7 people, many of whom fly in from around the country to attend.

Like you, he puts no price on the weekend, and tells people to pay what they think it's worth and what they can. He also promises there will be no pitching of products or upsells to anything. Period. He provides a free copy (or as many copies as you'd like to take) of his small book called 'Growing Your Business.' Brilliant marketing by having satisfied clients pass his book along to others. People put their check or credit card details for the weekend into an individually sealed envelope at the end of the weekend, and no one knows what anyone else pays. I am quite sure there is a very wide range of payments, though Mark would never divulge what those numbers are.

It is obviously working out very well for him, business-wise, since he continues running this workshop many weekends of the year. And people rave about how life-changing the weekend was for them, myself included.

As others have told you, it takes courage to stand by your product as you have. I join with the others in applauding you.

All the best for continuing success,

Paulette




A place to transform your knowledge into tips booklets for marketing, motivating, and making money.

Hi Rooster,

Thanks, an amazing post! Thank you for sharing your experiences....

I know about two examples of "pay what you think it's worth" - but both are "offline" examples. Both are restaurants.

The first example is a restaurant here in my city - Melbourne, Australia. It's a vegetarian restaurant - I first heard about it from one of my brothers, who's vegetarian.

It's just a small restaurant, but nowadays, whenever I pass by it, it's always packed full, it seems no matter what the time of day. When you go there, the "menu" is written up (in big letters) on the wall, and there are no prices listed.

After your meal, when you go to pay, and ask "how much do I owe you?" the staff member simply replies with "Whatever you feel like". And they mean that literally - you pay whatever you feel like you want to pay!

(The restaurant is called "Lentil As Anything".)

The second example is one I read about once. It's about a restaurant which was operating, I think in the 1970s or so. It was a normal restaurant, where also, you simply paid what you felt your meal was worth. From what I've read, this restaurant was always full too, and got a lot of business. And here's the surprising part....

In this restaurant, the owner found that people often "overpaid". That is, most people chose to pay MORE than they otherwise would for their meal. And they loved it too.

So, it seems in some situations, the "pay what you feel it was worth" business model is a successful business model. I think what Marcia Yudkin said is true though - one of the keys is that the customer is not "anonymous".

Remember Stephen King experimented with a system, where you paid a "donation" to read a chapter of his next book. His experiment failed, though - many people just wanted it for free, and didn't pay anything. I think the problem in his experiment was that people could download anonymously. If you had to identify yourself to download it, then perhaps his experiment may have turned out differently....

Fascinating topic, though. Thanks Rooster (and everyone else)!

- Dien Rice