It's nuts!

How can people possibly fall for it? It's the same, isn't it? But nooo, people do not perceive it as the same. And, they are still willing to pay through the nose for it! There in lies the power of McDonald's ice-cream marketing.

Here's the scoop...

Right here in the sunny island of Singapore, we have the infamous McDonald's ice-cream cone going for 50 cents. Ask for an ice-cream cone. They'll go to the ice-cream dispensing machine with a cone, and pop goes your 50 cents.

Ask for a sundae. They'll go to the *same* ice-cream dispensing machine with a plastic cup, pour some chocolate syrup, and there goes your $1.50.

Ask for a sundae float. They'll go to the *same* ice-cream dispensing machine with a plastic cup of coke, and there goes your $2.50.

Amazing, isn't it?

It's the *same* old ice-cream machine, but the price went up 5 times with a little extras thrown in!

Let's Look at it Another Way

"May I have an ice-cream cone?" That's 50 cents. "Could you add a little of the chocolate syrup as a topping?" That's 20 cents. Total: 70 cents for a chocolate sundae!

"May I have a cup of coke?" That's $1.20. "Could you add some ice-cream to it?" That's 50 cents. Total: $1.70 for a sundae float!

So, What's the Point?

You can always command a better margin by presenting your products or services in a *perceived* "more expensive manner. For instance, I notice that a bottle of gingko biloba goes for $20. And, a bottle of "Gingko Biloba Spectrum" goes for $47! What's the difference?

One only has gingko biloba, the other added vitamin c and some other trace elements which supposedly enhance the effect of gingko biloba. Just for that, we pay $27 more! And, of course, a nicer sounding name makes a difference.

Look at it the other way. What if we say we have vitamin c and trace elements, and then we add in gingko biloba?

Can we command the $27 increase in price? Maybe not. Because it seems that we are buying vitamin c and trace elements with gingko biloba added in.

Now, vitamin c as a base product sounds cheaper than gingko biloba as a base product. But, it's the same, isn't it? It's like saying the glass is half empty and half full. But, half full sounds nicer, and more expensive.

Hence, it is very important to present your products or services in the correct "order" to maximize perceived value.

How Exactly You Can Up Your Profits Selling the Same Old Thing

Here's my two pence's worth.

Tip #1:
Identify the base product you are actually selling. Do people perceive the base product as expensive in the first place?

This is like gingko biloba with vitamin c and trace elements added versus vitamin c and trace elements with gingko biloba added in.

Tip#2:
Have an expensive sounding name to go with your product or service.

Compare ice-cream with sundae. As far as McDonald's is concerned, it's the same old ice-cream dispensing machine! But, one with a little chocolate syrup costs 3 times the other. And sure, sundae does sound more expensive than ice-cream!

Tip #3:
What else can you add to your base product so that it will be perceived as more expensive?

Think about a cup of coke which costs $1.20. Add in a scoop of ice-cream, call it sundae float, and pop the price hits $2.50!

Tip#4:
Imagine whether there is any other way to increase the perceived value of your product or service?

Throw in a free consultation, longer guarantee period, a free report, etc. Oh well, you get the idea.

Tip#5:
Put yourself in your customer's shoes, and try to see your products or services through their eyes. What do you see? Is it a Great Bargain or what? Value for money is not enough.

There you are. Increasing your margin is a matter of perception. And you can do it too!

Go to http://www.1stopriches.com/ for more information.