Originally posted November 18th, 2011
Granted, I donâ€™t sell many of them but I offer a heart shaped charm (sold by Conde) for $49.95. The charm costs me less than $10.
Along the way, I learned how I could sell this innocent little charm (necklace to be more precise) for $50. Here is something of what I learned. I used to look at this heart shaped charm and see something with a perceived value of about $20. Thatâ€™s because Iâ€™m not a woman who might wear it â€“ nor a mother or grandmother who might cherish it.
You see, as nice as the charm is, I could only see the intrinsic value of the silver and not the emotional value of the image sublimated on it. When I got hold of that concept, I began to see the true value of the charm.
As I saw more of the emotional value of a charm with pictures of grandchildren or children on it, I began to sell it for $30 but I wasnâ€™t very happy with that since it is only a 300% margin and I like products that yield more like 500%.
Then I realized something else. If I took that same $30 charm and put it in a velvet jewelerâ€™s box, I could sell it for $50. Same product but now its perceived value was higher because of that silly little box! There is a reason why jewelers put rings and things in those fancy boxes! Iâ€™m even tempted to order some with my company name on them! That might not be as impressive as some big Jewelerâ€™s brand but I willing to give it a try.
You see, perception is a major part of any sale. If the customer perceives value in something, they are willing to pay at least that much to own it. Since most of the value for something like this is on the part of the recipient who is often not the purchaser, the trick is to taunt the perceived value to each person in a different way.
To the recipient whom you will rarely get to meet, there isnâ€™t much you can do. The purchaser, who may see only dollar signs, has to have his or her attention diverted to things other than money. â€œShe will treasure it because it has the faces of her grandchildrenâ€ or â€œMom will love having a necklace with her familyâ€™s picture on itâ€. To the purchaser, we must display the perceived value by how it is presented and packaged. If you just throw a necklace into your showcase, it isnâ€™t going to demand much respect. But put it in a jewelerâ€™s box and attach a sign with the words, â€œSterling Silverâ€ and â€œHand Carved Florentine Finished Edgesâ€ and it begins to take on a new appearance â€“ one of quality and value â€“ itâ€™s the same charm but seen through different eyes.