I read an article over the weekend that I thought was interesting and I decided I would share it with you, my readers. In case you’re interested in reading it too, I found it on a news website called Red Orbit. Feel free to look it up, but here’s what it was about.
A German neurobiologist named Kai-Markus Müller and scientists from the Munich University of Applied Sciences recently conducted a study on pricing and consumer’s willingness to purchase. They used a small cup of coffee from Starbucks that costs $2.45 for the study.
They showed the same cup of coffee on a screen several times to participants, but with different prices, all while scanning brain waves using an EEG. Strong reactions to coffee that was either priced too high or too low showed up in the brain within milliseconds, such as a small coffee costing $0.10 per cup.
The study found that subjects were willing to pay between $2.85 and $3.25 for a small coffee at Starbucks. “In other words, the company is missing out on millions in profits, because it is not fully exploiting consumers’ willingness to pay money,” Müller said in a statement.
It makes you pause and think, really. How do we really assign value to a product or service? Do we actually evaluate the utility of the products and services we use every day? Probably not. And if we did, would we change the way we buy?
It also made me wonder about the pricing of our Ultimate Website. For example, our agents can buy a state-of-the-art website, complete with LCM technology, client manager, mobile application, and unlimited coaching and support for less than they would spend for that daily cup of Starbucks on their way to the office.
Less than a cup of Starbucks! Makes you think: One can change your morning. The other can change your life. The more I think about it, maybe I should get Muller and his team to help us decide what our pricing should be. Somehow I have the feeling that he would recommend raising the price.
Anyway, I thought I’d share it with you and see what you thought. For many of you who already use The Ultimate Website, I thought it would be a nice reminder of what a great value it is. If you’re not yet using my Ultimate Website, I’d encourage you to check it out. I think you will be amazed at just how much you get for such a tiny investment.