A good story helps increase the price of a product
Posted: Sun Jan 19, 2025 10:21 am
What would make you pay more for a product that doesn't seem to have any major differences and that can be found in many different places? For example, a toaster, a pair of sneakers, a replica of a painting?
It may seem strange, but people pay, and much more than you might think, when there is a story and context surrounding the product offering.
Every entrepreneur should think about telling mexico phone numbers stories about their products, as this can increase people's interest and, therefore, achieve a more attractive sales price for the company.
Setting the price of a product has long been a difficult task. Marketing experts know that it is not enough to simply include a margin on the cost of the product and put it on sale.
You need to analyze the price charged by the competition, the perception of value attributed to the product by the potential consumer and the positioning you want to give the product in the market, which often results from the positioning of the company as a whole.
An unusual way to increase the perceived value of a product by the consumer is to tell a story in which the product plays an important role, but not necessarily as the protagonist, that is, it is not about telling the story of the product itself.
According to Ty Montague of Harvard Business Review, the person who began researching this effect in detail was New York Times Magazine columnist Rob Walker in 2006. The results were so unusual that the research took shape and led to the creation of a website ( http://significantobjects.com ) and a book on the subject.
The question Walker wanted to answer was why some products were sold at prices many times higher than other apparently similar products.
To test his hypothesis that people value the context and history in which products are inserted more and, therefore, are willing to pay amounts that most people consider exaggerated, he used a simple strategy.
He bought several items ranging from $1 to $4, including from thrift stores. Examples of items include a plastic banana, a used hotel room key found on the street by someone, a small wooden suitcase, etc.
He then asked unknown writers to write stories in which these products were mentioned. He then put the products up for sale on eBay, contextualized by the story created for each one.
The result was impressive. On average, the products had a 2,700% increase in value.
The conclusion is simple, but important: telling a relevant and meaningful story to the consumer can be an extremely valuable strategy that will increase your company's earning potential, as it will allow you to charge higher prices for products that are apparently considered simple commodities.
It may seem strange, but people pay, and much more than you might think, when there is a story and context surrounding the product offering.
Every entrepreneur should think about telling mexico phone numbers stories about their products, as this can increase people's interest and, therefore, achieve a more attractive sales price for the company.
Setting the price of a product has long been a difficult task. Marketing experts know that it is not enough to simply include a margin on the cost of the product and put it on sale.
You need to analyze the price charged by the competition, the perception of value attributed to the product by the potential consumer and the positioning you want to give the product in the market, which often results from the positioning of the company as a whole.
An unusual way to increase the perceived value of a product by the consumer is to tell a story in which the product plays an important role, but not necessarily as the protagonist, that is, it is not about telling the story of the product itself.
According to Ty Montague of Harvard Business Review, the person who began researching this effect in detail was New York Times Magazine columnist Rob Walker in 2006. The results were so unusual that the research took shape and led to the creation of a website ( http://significantobjects.com ) and a book on the subject.
The question Walker wanted to answer was why some products were sold at prices many times higher than other apparently similar products.
To test his hypothesis that people value the context and history in which products are inserted more and, therefore, are willing to pay amounts that most people consider exaggerated, he used a simple strategy.
He bought several items ranging from $1 to $4, including from thrift stores. Examples of items include a plastic banana, a used hotel room key found on the street by someone, a small wooden suitcase, etc.
He then asked unknown writers to write stories in which these products were mentioned. He then put the products up for sale on eBay, contextualized by the story created for each one.
The result was impressive. On average, the products had a 2,700% increase in value.
The conclusion is simple, but important: telling a relevant and meaningful story to the consumer can be an extremely valuable strategy that will increase your company's earning potential, as it will allow you to charge higher prices for products that are apparently considered simple commodities.