One of the challenges that Durham, NC area businesses face is converting a shopper into a sale. When you further explore the fact that there is so much competition for the same product or service, getting that shopper to commit to the sale becomes even more challenging. One of the more proven concepts for conversion is the call to action. In the last article we looked at the need of having your call to action to be competitive as part of the three basic parts of an effective call to action.
This article we will look at the third successful criteria: The Perceived Value
Perceived value simply stated is: The common perceived price that a particular product or service has based upon the average that the product is sold for in Durham, NC or what the MSRP was set at. Think about products and services and how much something generally would cost. For example: a 32“ Smart TV has a perceived value of $300, a Bluetooth headset has a perceived value of $65, a lawn mowing service for a small property may have a perceived value of $25, a carwash has a perceived value of $7. Naturally the perceived value of different services will be different based upon location.
By understanding the perceived value of products and services it helps you make your call to action in Durham, NC more productive. We all remember the “free toaster with purchase of” in our marketing examples from the 70’s. While it is true that toasters back in the 70’s had a perceived value of $60; today a toaster has a perceived value of $15. When a product is continually devalued by offering it for free it can significantly affect its perceived value. (Flashlights and calculators are a great example)
It is amazing to me that so many companies in the Durham, NC area still offering a free calculator or free flashlight with a purchase. The perceived value of those products are down to just a couple of dollars. Additionally, the longer a product is on the market the cheaper that it will be. Perfect example is that a 7” tablet just a few years ago at a perceived value of $300, now it has a perceived value of $175.
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Here’s where you can get the best use of your perceived value understanding for your Durham, NC area business. As we previously mentioned, when coupons are offered or a product offer is made such as: “free Bluetooth with purchase of”; anything less than 15% of the value of your product or service is deemed as not worth the consumer’s time. By purchasing a product to offer below the perceived value and then offering it as the incentive you can save yourself money. Check this out:
Paving Service $2000 – a good coupon at 15% would mean $300 out of pocket.
OR offer a product that has a perceived value equal to greater than the 15% – But buy it in bulk so that your cost on that product is significantly less.
Around Christmas time is a great time to purchase five or six 32” TV’s. In fact, you can usually pick them up for about $100 apiece. So now you have invested $100 in your call to action but your customer perception is $300.
Even better is the mental perception that a percentage off is usually compensated by “raising the price”. When your price is competitive AND the customer is receiving a tangible product rather than a percentage off… The credibility of your offer goes up exponentially!
There are many commonly sought items in the Durham, NC area that, depending on your product or service price point; you can really score big. Purchasing from overseas vendors at bulk discounts can allow you to offer a product in place of a discount that has a good perceived value; but only cost you dimes on the dollar. A little-known Chinese outlet known as GEEK allows you to purchase common items such as a Bluetooth headset for only $6. Couple that with a perceived value of $65 and you can practically give them away!
Important note: Because of retailers in Durham, NC like Best Buy, Walmart and Home Depot customers have familiarized customers to products not being made as well as they used to be; this is to your advantage. The brand of the product is not as important as the perceived value. The fact that you are offering a Bluetooth headset with a perceived value of $65 is all the customer cares about. They don’t care that it’s made by Bose or some Chinese knockoff. Same goes for smart watches, drones & tablets; the brand name in many cases is irrelevant if it did not cost them anything to acquire it (FREE).
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