Your products have real value, and then they have “perceived value.”
Real value is what your product delivers to your customer. This might be the benefits, what it can do and what it can provide.
“Perceived value” is what your customer believes about the value of your product, or how they perceive its worth.
Understanding the Gap Between Real and Perceived Value
“Perceived value” doesn’t always align with real value. For example, you might have the best product in the history of the world—a product that can make all of your customer’s dreams come true. This product has extremely high real value. But if the product looks poor and is presented in a way that makes it seem like junk, then its perceived value will be terrible.
Conversely, you might have a poor product that doesn’t deliver any real value whatsoever, but it looks great. It sounds great. It has the appearance of being something truly special. Therefore, it has high perceived value.
According to recent research from CXL, perception is malleable and can be influenced without changing the actual product. Studies show that branded painkillers are actually more effective at reducing pain than generic versions—even when they contain identical ingredients. The difference? Perceived value.
Ideally, you want an excellent product with high real value as well as high perceived value. Here’s why:
The perceived value is going to sell your product for you. The higher the perceived value, the more you can charge or the easier it is to sell, or a combination of both.
The real value is going to satisfy your customers, support your reputation and keep your customers coming back to you for more, rather than demanding your head on a stick and a fast refund.
Why Perceived Value Dominates Modern Markets
Now then, I’d love to tell you that real value is the critical factor here. And maybe 50 years ago it was, but today perceived value is far more important to your profits than real value.
In an age of fake Facebook posts and ‘reality’ shows that are anything but real, most people don’t recognize genuine value. We’re more concerned about how we look—and how others look—than what’s inside. We judge books by their cover and movies by their trailer.
As much as we might deny it, appearance is everything. And if your product doesn’t have high perceived value, then you’re not going to make sales, regardless of how great your product actually is.
Your customers will make their decisions based on what they can see before they buy.
The Power of Value-Based Pricing
Consider this example: one online marketer is selling a book for $35, while another marketer is selling a complete course with 10 modules, 3 bonus books, 5 interviews and 20 videos, also for $35.
Both the book and the course contain the exact same content—it’s just packaged differently.
Who will sell more? Certainly, it’s the second marketer with the course and all the bonuses.
And the only difference is… perceived value.
Here’s the kicker—the marketer with the 10 module course might actually have an inferior product. The marketer with the book might be delivering information that will end global climate change and make everyone a millionaire.
But it doesn’t matter. What matters is how customers perceive the offers.
12 Proven Strategies to Build Perceived Value
By now you’re realizing—having excellent content in your products is great and exactly what you should strive for, but without the right window-dressing, you’ll never make sales.
With that in mind, here are 12 strategies to increase perceived value and dominate your marketplace:
1: Tell Your Story
Back in the 80’s, a certain beer company wanted to boost sales, so they hired an advertising agency to help them.
The agency quickly realized that one beer wasn’t all that different from another. Sure, you could say it tasted better, was less filling, more refreshing or suggest you got more dates with attractive women when you chose a particular brand, but the other beer companies were already doing all that stuff.
How to differentiate? How to increase the perceived value of the beer?
The advertising agency was stuck for an answer, so they sent a team to study the beer manufacturing operation.
What they discovered amazed them.
The hops and other ingredients went through a long, many layered and multi-step process to finally become beer. There was actually a LOT involved in making this beer, and every step in the process was essential to ensure a delicious, exceptional product.
The advertising agency created a television commercial that laid out the entire process for the audience to see, from start to finish. It really was an amazing commercial, except to the client.
When the client (the beer company’s marketing and executive team) looked at the commercial, they weren’t impressed at all.
“Every beer company uses this exact same process. Ours isn’t any different from everyone else’s, so you can’t use it in a commercial. It won’t work.”
Ahh, yes, but the public didn’t know this. When the campaign hit the airwaves, the public perceived incredible value in this particular beer and sales skyrocketed accordingly.
Takeaway: If it’s relevant, detail your process to your prospects. If you paint houses, describe every step of the process. If you sell real estate, describe everything that you handle for the buyer or seller. If you sell digital products, describe everything that goes into researching and testing what you teach.
It’s one thing to say, “Here’s the product.” It’s a totally different thing to say, “Here’s the 6 month (or 5 year) journey that finally resulted in this once in a lifetime product.”
2: Highlight Every Component
A natural follow-up to telling your story is to highlight each and every component that goes into your product.
It’s one thing to say, “Here’s a 200 page book.” It’s another thing entirely to say, “Here are the 41 things you will discover in this book, and the 12 benefits you will immediately receive when you put these into action.”
Consider a painter. If he says, “I paint rooms,” nobody is impressed.
But if he says:
- I help you choose the perfect color
- I go to the paint store for you so you don’t have to waste your time
- I buy the paint wholesale, saving you money
- I put down coverings to protect your floors and furniture
- I sand off old paint, clean the surface, fill in any holes and cracks
- I use primer to ensure the paint adheres and looks great for years to come
- I paint 2 coats so there is no streaking and it looks perfect in any light
- And I remove all trash, move all furniture back where it belongs, clean up everything and make it look absolutely beautiful and gorgeous
One person says he’ll paint the room. The other person says he’ll do all of the above (and probably more). Who are you going to hire?
If you’re selling an online course, list everything they’ll learn in the course. Even small things that you take for granted.
For example, maybe you know the perfect software to get a certain thing done. Don’t assume your customer knows this. It’s quite possible your customer has been pulling her hair out trying to figure it out, and here you are with the answer inside your course.
List EVERYTHING. The more you list, the higher the perceived value.
Pro tip: Some customers are readers and others are skimmers, meaning some just want the highlights and others want every detail. Create two bullet point lists. One has the highlights—maybe 3 to 7 points. The other one is comprehensive, with perhaps 25, 50 or even 100 or more points.
3: Modularize
If you’ve got a 200 page book, break it down into sections or modules.
Remember, you’re not selling just a book, you’re selling a complete home study course.
Make each chapter a module of its own, with introduction and call to action at the end that tells them what to do next.
4: Extract Bonus Sections or Chapters
If your product includes bonus sections that can stand on their own, then make them completely separate from the main course.
For example, instead of 10 chapters on how to downhill ski and a chapter on how to cross country ski, offer 10 modules on downhill skiing and a bonus on cross country skiing.
5: Add Multiple Formats
Is your product on videos? Have them transcribed and turned into PDFs, along with providing the audio files, too.
Is your product written? Make one video for each module.
Different people prefer different methods of learning, plus it makes your package look bigger and increases perceived value.
6: Add Your Own Interview
Have someone interview you about your topic, and then add that to your course as another bonus.
7: Interview Other Experts
Choose experts in your niche and interview each one of them on one topic. For example, if your product is about organic gardening, you might interview one expert on fruit trees, one on roses, one on vegetables etc.
8: Offer a Free Trial
Perceived value skyrockets if you can offer a free trial of your product. For example, a free 30 day trial of your software, or 15 day trial of your membership site.
Now instead of paying full price upfront, they are getting it for free.
Many will stay on and continue to pay, and those that don’t have not cost you anything.
9: Offer a Free Trial to Something Else
In addition to the product you are selling, offer a generous free trial to another product of yours.
This gives twice as much for their money, makes the deal look twice as good, and doesn’t obligate them to continue with the second product.
10: Offer a Free Trial to Someone Else’s Subscription or SaaS
Strike a deal with another marketer to offer a free trial to their subscription or software as a service to your buyers.
This gives you a list of buyers, and if the customer continues with the subscription or SaaS, you also make an additional monthly commission.
11: Offer Free Q&A Calls
This is easier than it sounds. Simply get on the call once a week and answer everyone’s questions.
Are you afraid they’ll ask something you don’t know? Take questions via email before the call. Research anything you don’t know ahead of time, and you’ll appear like the pro you are.
Then put the Q&A calls in the members area for added value.
Advanced tip: Gently mention your other products on these calls when appropriate.
For example, if someone asks about driving traffic, you might give a few ways of doing it, and then mention you have a complete course on the topic for those who want to learn more.
12: Offer Email Support
This adds incredible perceived value to your product because it assures buyers that you will be there to help them if they need it.
You might be thinking you don’t have time to do email support, but most buyers will never actually use the service.
Those that do tend to ask the same questions over and over again, so you can write out those answers and then just copy and paste them as appropriate.
You can also hire someone to answer the emails for you, thus taking no time at all from your busy schedule.
How do you pay the person to answer the questions that do come in? From the added sales that you get from offering the service.
For example, if you’re selling a $200 course and you average an extra 10 sales per week because you offer support, and it costs you $200 a week to have someone answer questions once a day, you’re still $1800 ahead than if you didn’t offer free email support.
Modern Psychology of Perceived Value
Recent neuroscience research reveals fascinating insights about how customers perceive value:
The Wine Price Study
Stanford researchers found that when people taste the same wine but are told different prices ($5 vs $45), the brain’s pleasure centers actually become more active when drinking the “expensive” wine. The perceived higher price literally made the wine taste better.
The Power of Exclusivity
Studies show that scarcity enhances perceptions of both expensiveness and desirability. This is why limited-time offers and exclusive access programs work so effectively. People want what they believe they can’t easily have.
The Altruism Effect
According to recent consumer research:
- 94% of consumers report they would switch to a brand that supports a cause
- 20% would pay more for a product if it supported a cause
Adding an element of social responsibility or charitable giving to your offering can significantly increase perceived value without changing the core product.
Frequently Asked Questions About Perceived Value
What is perceived value pricing strategy?
Perceived value pricing is a strategy where vendors assess the value of their product to each customer and charge a price based on the customer’s perceived value of the product’s attributes and benefits, rather than its production costs.
What are the main types of pricing strategies?
The four primary pricing strategies that dominate markets are:
- Value-based pricing – Based on perceived customer value
- Competition-based pricing – Based on competitor prices
- Cost-plus pricing – Based on production costs plus markup
- Dynamic pricing – Prices change based on demand and market conditions
What is the difference between perceived value and actual value?
Actual value represents the objective benefits and functionality a product delivers, while perceived value is what customers believe the product is worth based on their subjective evaluation of its benefits, brand reputation, presentation, and emotional appeal.
How do you calculate perceived value?
Perceived value is calculated as: Perceived Benefits ÷ Perceived Costs = Perceived Value. Benefits include functional, emotional, and social advantages, while costs include price, time, effort, and risk factors.
What is an example of a perceived value product?
Luxury brands like Apple exemplify perceived value products. An iPhone may have similar technical specifications to competitors, but customers perceive higher value due to brand prestige, design aesthetics, ecosystem integration, and social status associated with ownership.
Common Pitfalls to Avoid
Over-bundling with Mixed Values
Research shows that bundling expensive items with cheap ones can actually reduce perceived value. Customers may perceive the entire package as being worth less than the expensive item alone.
Ignoring Market Positioning
Your pricing strategy must align with your market position. Premium positioning requires premium presentation, customer service, and overall experience to justify higher perceived value.
Neglecting Social Proof
In today’s digital marketplace, customer testimonials, reviews, case studies, and social media validation are crucial for building perceived value. Neglecting these elements can severely limit your pricing power.
Conclusion: Making Your Offer Irresistible
Naturally, there are endless ways to add perceived value. Sometimes just getting a cover made that looks more professional than the one you’re using can increase perceived value and sales.
Your goal is to look for things you can do that don’t cost much of anything, but enhance your product’s perceived value and therefore increase your sales.
The one question you should ask yourself over and over is this: “How do I make my offer too good to refuse?”
Make your offer head and shoulders better than anything else offered in your niche, and you will never lack for sales.
Remember—perceived value is every bit as important as real value, and perhaps more so in today’s competitive marketplace.
Ready to Dominate Your Market?
Building perceived value isn’t just about pricing—it’s about creating a comprehensive brand experience that resonates with your ideal customers. At Scope Design, we help businesses transform their market positioning through strategic brand development, compelling web design, and persuasive marketing materials that naturally communicate value.
Whether you need a professional website that builds instant credibility, marketing collateral that tells your story effectively, or a complete brand identity that commands premium pricing, our team specializes in creating the “window dressing” that turns browsers into buyers.
Contact Scope Design today to discover how we can help you build the perceived value that dominates your marketplace and drives sustainable business growth.
