The perception of value is a peculiar thing. For instance, years ago I attended a wine tasting where the sommelier explained that price should have nothing to do with how we buy and drink wine. He told us it was all in our head, and that a blind tasting experiment would prove price should not determine what wine we prefer. During the experiment, the labels of two bottles were covered, with the price being the only information the tasters were privy to. After tasting each wine, they were asked which one they thought was better, and an overwhelming majority picked the more expensive one.
When the big reveal happened, it turned out both the bottles were the same; same vintage, same winery, same grape- there was no difference! Despite that, when the participants were asked again which wine they liked better, a large number still preferred the bottle they were originally told was more expensive. As I said, the perception of value is peculiar ?.
During one of the last seminars I attended before this new normal, the speaker at the event spoke of a software company that he knew sold an amazing product. Despite the phenomenal software product, the company struggled to gain business. After conducting some market research, they discovered that their prospective customers were not buying their product due to its price! Ironically, they found the cost to be too low, leading them to think that the product couldn’t be that good with such a low price point. As a solution, the business raised the rates of their product significantly, resulting in more business coming in than they knew what to do with; a good problem to have!
At their core, both these stories revolve around our perception of value on a monetary basis. We are all guilty of believing that the higher the cost, the higher the quality. However, our perception of value does go beyond material items we can buy, it also applies to our experiences. There is tremendous value in things that are free. Taking a moment to catch up with a friend, going for a walk to break up the workday, or gaining feedback from a colleague or a client cost nothing at all, but are valuable, nonetheless.
If you want to take a moment to catch up, don’t hesitate to reach out.
“How good something is should never be determined by its cost or its perceived value by others.”– Ashley Lorenzana
Have a great weekend.