I was recently watching one of Alex Hormozi’s YouTube videos in which he offered a brilliant explanation of how you can increase the perceived value of your products and services.
I figured that I would relay that information to you, in my own words, to help you understand how to improve your offers, increase your prices and make more sales, consistently.
Wondering how to increase perceived value and sell like crazy? The answer is to create an offer that provides the quickest and most reliable solution to your client’s biggest problem(s), whilst requiring the least amount of effort from the client themselves.
If you can create an offer that ticks all of these boxes, then there’s no excuse as to why it’s not selling like cold ice cream on hot summer’s day.
1. solve An Actual Problem
Knowing how to increase perceived value begins with actually solving a problem for your client.
The more persistent that problem is for the client – the better.
For you at least.
If your offer doesn’t solve an obvious problem then there’s a good chance that you’re just focusing on the money-making aspect of business.
Remember, the sole purpose of an entrepreneur is to help others.
Making money is just a result of your generosity.
I recommend that you spend some time getting to know your ideal clients first and learn about what their current obstacles & goals are.
From there, you can begin to create an offer that is the perfect bridge between the two.
Let’s use an example…
If you’re reading this article then there’s a good chance you’re an entrepreneur like me.
So I’ll use some relatable examples that will help you to understand how to increase perceived value effectively.
In today’s example, we’ll be comparing a marketing ebook to a done-for-you marketing service.
Let’s say that you are the client and you’re currently struggling to find new clients of your own.
At first glance, both of these offers provide you with a suitable solution to your problem.
However, they are both priced very differently.
The ebook could be sold for as low as $14, $7 or even for free!
Whereas the done-for-you service could run into the 5-6 figures.
That is mostly due to the following three points…
2. Guarantee Results
This is where we begin to see the major differences between the ebook and the done-for-you service.
With the ebook, the results that you get are highly dependant on you (the client) actually implementing the lessons that you’ve learnt from the book.
I mean, this could be the greatest marketing book of all time BUT if you’re not willing to put in the necessary effort then you’re not going to get any decent results.
Whereas with the service, the onus is on the supplier to get you the results.
For the sake of argument, let’s say that the supplier has worked with thousands of clients in your situation and has established a 99% success rate working with them.
With that in mind, the perceived value of their service is much higher than that of the ebook.
This is because you believe that it’s far more likely that you’ll achieve your desired results with the service.
Of course, that is dependent on the quality of the service and its supplier.
After all, someone with hundreds of positive testimonials behind them would be in a much better position to guarantee those results than someone who just started yesterday.
All in all, it’s a big win for the done-for-you service in terms of the likelihood of actually achieving the intended results.
3. Deliver Results, Quicker
One thing that people will always pay over the odds for is speed.
Not just the drug, but more so the time it takes for them to achieve the results that they so desperately crave.
If you can guarantee results quicker than your competitors can, then you’ve immediately increased the perceived value of your offer.
People will pay more for speed.
I mean, there’s a reason why Concorde passengers were each forking out $12,000 for a 3-hour flight across the Atlantic!
A more recent example of using speed as a competitive advantage would be Amazon’s next-day delivery or Domino’s 30 Minutes Free Pizza Policy.
But as Alex Hormozi also pointed out, people will happily choose your paid offer over a “free” competitor if you can guarantee quicker results.
As he says, “Fast beats free”.
Going back to our previous example though, the done-for-you service is far more likely to guarantee you quicker results, compared to the ebook.
This is because of reasons already mentioned, such as you being responsible for your own results [with the ebook].
Again, another win for the done-for-you service.
4. Reduce Your Client’s Effort
Not only will people pay more for quicker results, but they’ll also pay extra if you reduce the amount of effort that they’d have to spend in getting those results.
The easiest example I can give you is takeaway food.
Even as I’m writing this article, I’m thinking about ordering some Sweet & Sour Pork from the local Chinese restaurant.
Why? Because I can’t be bothered to cook myself.
I know how to cook, don’t get me wrong.
But I’m just not in the mood for all that hassle tonight.
That’s why I would happily pay for somebody else to cook for me.
If we refer back to our marketing ebook, there’s a lot of effort involved in achieving the results that were advertised on the book’s cover.
Not only does the work require me to read the entire book, but I also have to implement the lessons that the book teaches.
This is time that I could have otherwise spent doing things that I actually enjoy.
With the marketing service though, the work is all done for me.
There is very little effort or sacrifice required on my part.
That’s why you can afford to charge a premium for your services.
- P.S. – In case you had lost count… The done-for-you service has annihalated the ebook, 4-1.
How to Increase Perceived Value
Knowing how to increase the perceived value of your offer comes down to solving a specific problem for your client, within the quickest timeframe possible and with the least amount of effort required from said client.
If you can guarantee fast results without them having to sacrifice their time and energy, your clients will not only choose you over your competitors but they will also pay a lot more for it too.
Have any questions or feedback on how to increase perceived value? Let me know in the comments below