Have wants, not needs
Recently, I met someone who told me a product that was available to her was expensive and she didn't need the product. It occurred to me that just about every product, if not needed by that person, even if it's just $1, is too expensive. Yet, why do brands like Chanel or Escada still live on? Do the people who buy from these brands really need that $800 blouse or truly believe it is inexpensive or of great value? The fact is, we don't need very many things...but most of us do want quite a few things. How many overpriced items do we own that is admittedly nothing we truly needed?
Value lies is not what we need, but what we want.
Hence, with the exception of groceries and other universally accepted “needed” items, just about all products or services are sold on fulfilling “wants”. It could be time-savings or convenience, which may seem at first glance like a “need”, but upon closer examination it is indeed a “want”. The ultimate test is whether you would die, suffer illness/severe discomfort, or live in utter misery without it.
Once something is deemed to be needed, the price is driven down. Or worse, a price ceiling is placed on it by the government.
The moral of the story? The trick is not to position your firm’s products or services as a needed item but a coveted item. This helps keep up those margins and a healthy profit. Getting people to need your firm’s product or service is a misguided strategy.
Value lies is not what we need, but what we want.
Hence, with the exception of groceries and other universally accepted “needed” items, just about all products or services are sold on fulfilling “wants”. It could be time-savings or convenience, which may seem at first glance like a “need”, but upon closer examination it is indeed a “want”. The ultimate test is whether you would die, suffer illness/severe discomfort, or live in utter misery without it.
Once something is deemed to be needed, the price is driven down. Or worse, a price ceiling is placed on it by the government.
The moral of the story? The trick is not to position your firm’s products or services as a needed item but a coveted item. This helps keep up those margins and a healthy profit. Getting people to need your firm’s product or service is a misguided strategy.
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