Perceived Value

“Perceived value is the worth that a product or service has in the mind of the consumer. For the most part, consumers are unaware of the true cost of production for the products they buy; instead, they simply have an internal feeling for how much certain products are worth to them.” Quote by Investopedia

We recently sold a lawn mower.  I posted it up on Craigslist for a price that I thought was a good deal.  Took a few quick photos.  Listed it and waited for the phone calls and text.

Problem was, I hardly got any response.

My mistake was in the presentation.  It was simple and to the point.  There was no sales pitch in the listing.

Since I showed such little effort in the presentation, I believe the perceived value was lower.  I pulled the listing from the internet.  Detail washed the mower, took professional looking photographs and laid out all of the accessories that were included in the sale.

Now what I did next surprises people.

I raised the price.  By hundreds of dollars.

Next thing I know, countless calls and texts.  I had now created an environment that gave the item more perceived value.  While cleaning this mower I started to remember how good it really was.  How productive I was on it.  How remarkably different it was to anything that our local market was become accustomed to.  Once I felt the value go up to me, I was able to convey that through my newest listing ads.

A guy drove an hour an half to come pick it up.  He just had to have it.  Paid my new higher price with no questions asked.  No negotiations on cost.

I would bet the new owner takes better care of this machine than if a buyer would have bought from my lousy ad that I started with.

Plus I made more money.

How does this apply to you?

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