Can you Increase Perceived Value of your service or product? Yes!
When you give away your product or service for FREE — there’s an amazing thing happens!
It completely loses its Increased Perceived Value!
You may have done this or someone you know did this… if you buy a mobile device for a teen, he or she may not take care of it as much as if he or she PAID for it, right?! They may drop it, lose it or get it wet, etc.
But, if they paid $700 for it, I can be quite sure that they would take care of it.
Those lottery winners are a great example. Lottery winners —more often than not — lose their money quickly. Why?
Because it was given to them.
It’s the same thing in your business. If you give away a service, they may not appreciate it as much (or at all!) as if they paid money for it.
Now, I’m not talking about free samples or things like that. It’s just when you give away something to a friend or a previous client (as a favor, maybe), you will find that they don’t show up, or practice the lesson or whatever.
And, for you, you just get frustrated that they aren’t using the thing you just freely gave to them!
Now, there IS a big difference with information. Giving away information for free is okay… to a point.
This website is a great example. It’s free to you with no strings attached.
I give away advice and information for free. And, in return, I get the credibility, the recognition and possibly… a future customer, subscriber, and friend.
However, I won’t give away a course on asking for the money, for example. I would want my customers to pay for it so that they get the value of the program.
And, as a product producer, I get paid for my efforts. Win-win!
So, if you are giving away your product or service for free, stop. Even if you charge a nominal fee, they will appreciate it more than if it’s just given to them. This is how you increase the perceived value of your product or service!