Here’s a quick one for you:
I’ve been doing a lot of thinking about “The Differentiation Gap” lately and what it means for someone to close the gap between how they are viewed and how they feel they should be viewed.
Which ultimately is a pricing decision…
Worth or cost.
I’ve also been thinking about the conversations going on in the primary and secondary market over ticket prices, what a ticket is, and how people should get tickets.
Again, are people shopping for tickets due to the cost of the ticket or the worth of the experience?
Final example before I explain, I’m doing a fundraiser for my son’s school and I have to appeal to the emotion of the community at the school.
To maximize the revenue from the fundraiser, do I focus on the amount (cost) that I am going to try and get everyone to contribute? Or, the worth of having your kid in a fantastic school?
Here’s the point I was hinting at:
People don’t buy or make decisions based on cost.
Sure, they may or may not buy something because it costs too much or too little.
But they are really telling you that this isn’t worth what you are charging for it.
Worth is the conversation you have to have with your audience. Because if something has tremendous worth and value, no price is too high.
If something has little or not much perceived value, the cost is a factor due to the lack of value.
This is why “The Differentiation Gap” is so important…if you aren’t worth something in the eyes of your market, you are a cost…not an investment.
Investments are about value.