Businesses are forever advertising that they have the lowest price. They say, “Why pay more, our blah blah blah sells for less.” The big huff is when they say, “ You won’t pay $199. You won’t pay $99. You won’t even pay $59. Our blah, blah, blah sells for only $19.” Horse hockey! No one was planning on buying their blah, blah, blah for anything even close to $19.
The purpose of this type advertising is to put all the emphasis on the price and move the emphasis away from the actual product.
The reason anyone pays more is because they get more. They get more features, more benefits, more quality, more service, more warranty, more of everything.
This is called the law of proportionate value. The law of proportionate value says, “The less you know about a product or service the more important price becomes.” For example suppose your wife has sent you to the store for laundry detergent. Let’s further suppose that you know very little or nothing about laundry detergent. Chances are you are going to buy the cheapest laundry detergent you see. Chances are your wife is going to be mad as a mashed duck that you brought home some crap that is being passed off as a laundry detergent.
The point is, the less you know about a product or service the more important price becomes.
The reverse of this law is also true, “The more you know about a product or service the less important the price.
For example, your boss asks you to buy 2 way radios for use in the plant. (I’m sure you can tell where this is going.) The boss might be thinking you’ll come back with the cheapest walkie talkies available. (They don’t work, they’re not covered by a warranty, the shipping cost is more than the radios cost but they are the cheapest thing on the internet.) But once again, you out think the boss and buy radios from 2 Way Radio Express. These radios work better than anything out there. They come with a full 4 year warranty. Even the battery is guaranteed for 4 years and the shipping is included at no extra cost. The radios cost a few bucks more but the value is light years ahead of the competition.
The moral is; don’t be a dunderhead and only look at price. Bring home Tide for your wife’s laundry and 2 Way Radio Express radios for your boss.