Wednesday, May 25, 2011

Interesting Story About Perceived Value

Perceived value is a real thing-seriously!

In the area where I live, the vast majority of people are hunters, gun shops are big business, and 2 out of 3 Walmarts have rifles.

But half of the hunters will not buy a NEW rifle at walmart for $200-$300.

They will go to the gun shop and buy a used rifle (same rifle, same manufacturer) for $300-$400 or a new one for $500 and up!

There are several gun shop owners I am friendly with. And I learned that sometimes they need a rifle fast. the customer wants a specific rifle that can be found at walmart, but will not buy "that cheap crap"

So what does the gun shop owner do?

He goes to walmart, buys the rifle, and sells it to the customer at the price they are expecting.

And the customer is happy!!!

1 comment:

  1. We need to take this to heart. We hate trying to price things for the shop and always worry that if prices are too high, no one will buy anything. We might be very wrong...