On Friday, I was reading a negative online review left by an outraged customer, unhappy about the price of two cakes and two coffees at a local boutique cafe. Although this business has oodles of positive reviews and a reputation for an incredible and locally sourced culinary experience, it still had a small handful of unhappy reviews. I’m an avid review reader and I find this seems to happen quite a lot in the online review world, and I bet I’m not the only one who has noticed. So, what does this mean?

Many people would argue that nobody in their right mind would pay double or even triple the amount for the same product that is just sourced or presented differently, yet we do it all the time. There are plenty of options at our fingertips to buy plenty of food products in bulk or at a cheaper price and we could eat at home rather than dining out, but, we don’t. Why?

 

To cut a long story short, we pay more money for convenience and status. We go out of our way to buy products that align with our sense of identity. We place just as much value, if not more, on how something feels rather than how much practical sense it makes. And this applies to everyone, not just those with extra money floating around for spending on indulgences. You may have noticed people who seem to live week to week make buying decisions all the time based on convenience or how they chose to show who they are. AfterPay has taken great advantage of this.

 

Often, the key question when it comes to pricing and value isn’t how much something is worth, or what people will pay. It’s, what is the story the client or customer is telling themselves about what the product is worth to them, and why?

 

Once we know that, we’ll tell a better story and ultimately build a stronger brand.