Perceived Value Versus Actual Value

I was emailed an offer yesterday that really got me thinking about perceived value versus actual value.

Often, we can be led to believe that something is an incredible “buy it now” value, when in reality the offer is only worth pennies.

We’ve all heard the saying “she could sell ice to an Eskimo”. Let’s face it, ice to an Eskimo does not have real actual value, but a good salesperson may be able to sell the perceived value.

Another example is the toys found in cereal boxes. When I was a child, an entire marketing campaign from the cereal company was focused on the toy inside the cereal box. Thousands of boxes of cereal were sold for the tiny toy found inside. This is perceived value. As we know, the actual value of the item inside the box was pennies. The toy was lost or broken within minutes. It was all perceived value.

I am seeing this same strategy being used online. Sellers are creating incredible perceived value for items that do not hold much actual value in dollars and cents. An example; an ebook is being sold on how to make money on the internet. I’ve seen these books offered for anywhere from $9.99 to $99.99. In fact, the web site and all ads will often cross out one price and in red insert a lower price. This is perceived value, creating the perception that something is worth more than it might actually be worth. Let’s look at the actual value of this particular book.

I learn that this $9.99 book comes with an affiliate option. If I, as an affiliate, sell one of these books, I can earn 50% of the commission. The sales pitch is all about the money I can earn, and how easy it will be to sell the item. But wait, we’ve lost actual value in the book. Remember, the book used to be worth $10. Now with 50% being given away, the actual worth of the book has dropped to only $5.

With so many books on the market, and so much free information available, I’m not sure I could recommend spending $10 for an item whose actual value has dropped in half as soon as the affiliate factor was brought in.

There is one other value that I’ve not yet spoken about and that is the value to you personally. Perhaps your child picked up all of his toys, so buying the box of cereal is worth the few dollars it will cost to get the toy. Or perhaps you really like the author of the ebook and you’ve read his/her books before and you know that what you’ll learn is worth the $10 you’ll pay. There is value in these purchases to you personally. By all means, make the purchase if there is real value to you; however be aware of perceived value and actual value in dollars and cents.

Audrey Okaneko has worked at home since 1983. She can be reached at audreyoka@cox.net or visited at www.recipe-barn.com

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