Value, Belief and Profit

Do you ever reread a book? I do it least several times a year because I realize that because I've changed; the way I first perceived and framed the book will be different the second time around.

I'm now rereading Influence: The Psychology of Persuasion (Collins Business Essentials)by Robert Cialdini. It was published in 1984 but has been reprinted many times and is called one of the greatest books on marketing and persuasion ever written.

Cialdini defines six “weapons of influence”:

  • Reciprocation – People tend to return a favor. Thus, the pervasiveness of free samples in marketing.
  • Commitment and Consistency – If people commit, orally or in writing, to an idea or goal, they are more likely to honor that commitment. Even if the original incentive or motivation is removed after they have already agreed, they will continue to honor the agreement.
  • Social Proof – People will do things that they see other people are doing. 
  • Authority – People will tend to obey authority figures, even if they are asked to perform objectionable acts.
  • Liking – People are easily persuaded by other people that they like.
  • Scarcity – Perceived scarcity will generate demand.

He tells a great story about a jewelry shop owner in Santa Fe, NM. This particular type of jewelery wasn't selling well so the owner told the assistant to cut the price in half and get it out of the store. Then the owner left on vacation. But, the assistant misread the note and increased prices by double. When the owner returned she found all the jewelery sold at double her previous pricing.

How does that happen? It's all about perceived value. By making the jewelery more expensive the customer equated price with value and determined that it must be really good jewelery.

Most customers and clients understand we need to make a profit and they don't begrudge that. They just want to feel that they are getting their money's worth or, a better way to describe it; they want to feel that they are getting value equal to their investment.

Too many of us are willing to drop the price or have an anxiety attack when we name our fees. That's crazy! As long as the client and you agree on the value that will be delivered and that value is worth X to the client why would you be willing to accept less for your work or product? The only reason I can think of is because you don't believe the value is worth the investment. Or, you don't believe in yourself.

Either way, it's probably time to get some help from a business coach or consultant.

You owe it to yourself and to your clients.

Leave a Comment

Your email address will not be published. Required fields are marked *

People do business with people that they know, like, and trust. Since we can’t pick or choose the “type” of person we are most likely to trust and like right away, we need to learn how to effectively with everyone’s personality style.” Learn how in this report and start increasing your sales right away!

Selling To The Four Personality Types

Close
Share via
Copy link
Powered by Social Snap