When Low Prices Send the Wrong Message
Earlier this week, I wrote that price signals value.
Let’s make that more concrete.
Not that you’re in the market for a parachute, but if you were, would you buy the one that’s half off?
Probably not.
When the stakes are high, low prices don’t feel like a deal.
They feel like risk.
How about a bottle of wine –
If you’re going to someone’s house for dinner, there’s a price below which (and above which) the bottle sends the wrong signal. How much you want to spend on a bottle of wine for your host matches what you know about the host’s tastes and the signal you want to send.
Now consider knock-offs.
If Bonny saw a Louis Vuitton bag for $29, she wouldn’t think, “What a bargain.”
She’d think, “That can’t be real.”
And she’d move on.
That’s the point.
Price signals quality – in both directions.
High prices don’t guarantee quality.
But low prices cause people to question it.
When something is priced too low, buyers won’t always think, “Lucky me.”
Some think, “What’s wrong with it?” and move along.
It’s not too late to offer packages at higher prices.
But repricing is a lot to think through on your own. Inside Peak Freedom, you’ll get insightful feedback from peers who have walked this trail before you, and can help you make better decisions, faster — without overthinking every choice.
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