The Theory Of Relativity – Keeping It Real

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I’m not talking about Uncle Albert’s E = mc2.

I’m talking about the ‘relativity calculation’ that your customers make before they decide to buy…especially if it’s a non-essential product.

They relate the price of your thing to something else they could use the money for.

$2,000 for an upgrade to Business Class Vs 2 nights in the Suite at that fancy hotel.

$20 for a steak and 1 beer, Vs $16 for a Burger and 2 beers.

You need to be thinking of this when you’re deciding on your Pricing and your Marketing.

You must convey the value and benefits of your product or service…because you can be sure your customers are making these ‘relativity calculations’ all the time.

#marketing #pricingstrategy #consumerbehaviour