October 5, 2019

Perception is everything

Sent by Jonathan Stark on October 6th, 2019

Twitter user @SteveStuWill shared a fascinating thread of perceptual illusions

It struck me as I was browsing through how many would make really good visual metaphors for the effect of context on the perception of value.

Humans are bad at absolute but great a relative.

For example... 

If you ask someone what the wingspan of a 747 is, they’ll probably reply: 

“I have no idea!”

But if you ask the same person if a 747 is bigger or smaller than the moon, they’ll say: 

“Smaller, obviously!”

(So.. turns out the DID have an idea after all, right?)

Here’s the thing...

It’s the same with pricing.

People are terrible at answering a question like: 

“How much is a new website worth to you?”

...but have an easy time answering a question like:

“Is a new website worth $10,000 to you?”

They’ll almost always say one of three things:

When trying to help your clients uncover what your intervention is worth to them, give them something to compare it to. 

Yours,

—J

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