Want More Profits? Just Watch Adele
As this article is being written the Adele concerts in Vancouver are only a couple of sleeps away. As we hear one story after another about how tickets sold out in just moments and how resellers and scalpers are getting thousands of dollars for just a few hours of entertainment it has me searching for the answer to the question, “Why?”
There are few who would argue that Adele is a great artist and puts on a great show. However, the fact is that you can watch her television special as she performs her wonderful songs in front of a live audience for free.
For the thousands of dollars that many are spending on their tickets you could go on an Alaskan cruise or an all inclusive vacation for 7 days. You could buy season tickets to your favourite sports team or feed 10 or more families in 3rd world countries for a year. On the other hand many of us will wait for an hour at the US border so we can save $20 on a tank of gas.
Understanding Perceived Value
The answer is quite simple and provides a foundational lesson to every business owner and marketer. It’s all about understanding human behaviour and how we attach a perceived value to everything we buy. For some it’s all about prestige. They want to be able to tell their friends that “they were there”. They can hardly wait to post that selfie on social media to rub it in just a little.
For others it’s all about the experience and taking themselves on a journey for just a few hours. The “want” becomes so overwhelming that some will pay almost any price to achieve satisfaction.
As I hear many business owners complain about tight margins and the intense competitive landscape my answer is always “but what are you doing to build the “want” or perceived value of your product?” Consumer behaviour has changed in recent years. It has evolved from consumption and acquiring assets to collecting unique experiences. Even the most commoditized product can provide a unique and rewarding experience with innovation and focus.
There was a local company that sold printer cartridges. The value they added was that a person would deliver the goods in a bright pink car and there was always a “treat” attached to the order that ranged from chocolate bars to donut centers. Customers loved the anticipation of wondering that treat would be included with their order today.
What is the unique experience you provide (or can provide)? How can you package your product or service and present it in a way where price has little to no effect on whether the customer will buy? If you can achieve a level of true “want” for your product profit margins will soar and your business will flourish into the enterprise you always envisioned.
