Imagine you are browsing round Harrods, and see a shiny silver tea-tray for sale at £800.
Now imagine you are browsing round a car boot sale, and see a shiny silver tea-tray for sale at 80p.
It’s the same tea-tray. The only thing that’s changed is the surroundings.
Top tip: Package your products well and you can charge more for them.
When setting your price point, remember that it’s all in the packaging.
But it’s not just what you do; it’s when you do it.
Last time I bought a new pair of spectacles, I spent ages choosing the frames I liked best. The cost was around £400.
When the optician phoned to say they’d arrived, I was excited to collect them, and slightly surprised when they were presented to me in a shocking-pink paper gift bag.
Inside the bag was a tall cardboard box, printed in a groovy multi-coloured design, and with a shocking-pink lid on top adorned with a gold-printed heart.
Inside the box was a red plastic glasses case with heart-shaped ends. It may even have been wrapped in tissue paper – can’t quite remember.
Inside the case (at last!), were my new glasses. I noticed little gold heart-shaped stickers on the plastic bits that rest on your nose. Nice. There was also a multi-print cleaning cloth.
Also inside the bag was a tall folded brochure, fully colour printed on quality paper. A cut-out ‘hand’ was stuck onto the front of the brochure. In order to open it, I had to slide off a strip of shocking-pink card that had been wrapped around it to hold the hand in place.
I couldn’t help thinking that the packaging must have cost an absolute fortune. And who paid? Me, that’s who.
I would have been far happier to pay less for my glasses, and to have received them packaged more plainly.
Instead of being happy with my purchase, and impressed by my choice, I felt I’d been over-charged.
Top tip: Package your products well at the point of purchase. That’s when the buying decision is made.