Placebo Science and The Art of Charging More for Less
Here’s a great idea – charge more for your product so that your customer likes it better.
Sounds strange, right? It’s the placebo effect at work. Here’s an example:
The same wine, when thought to cost $45 versus $5, was not only rated better by tasters but it actually lit up the pleasure center of their brains more. This means it really did taste better to them, all because they were told the price tag was higher.
By the same token, if you read in Consumer Reports that your new (fill in the blank) a great product, you’ll be happier with the product than if you hadn’t read the article.
So what are the takeaways?
Don’t be afraid to charge higher prices for your products. People really do associate quality with price. The other day my spouse passed on buying a product online for one reason only – because it was too cheap.
Get third party testimonials that are believable. You can’t get much more credibility than Consumer Reports, but you can find people who are well known in your niche to endorse your products.
You still need to fulfill your promises. This placebo effect isn’t a magical spell that makes customers think they got something they never received. If you promise something, deliver on it, regardless of your prices and testimonials.