Every single day of our lives, economics affects you and me.
This isn’t going to be some complex Harvard Business School MBA deep dive or even a Wall Street analysis.
But it is something that can help you understand sales and copywriting better.
Economics is a branch of knowledge concerned with:
Production (I’m moving my fingers along my keyboard as quickly as I can to “produce” this article for you. I want to make something of value that will help you be more successful. Maybe you’re in construction, banking, education, healthcare, or any other field. What is it that you produce?)
Consumption (If you’re reading this article, you’re consuming it. If you’re at a restaurant, consume a piece of pie for me. I’m not supposed to have it anymore ☹. If you’re a nurse caring for a patient, the patient is consuming your care.)
Transfer of Wealth (This is the one most people think about when considering economics. If I write a great sales page or awesome copy, somebody will buy what I’m selling and they’ll trade their money for the product in question to be consumed. At the end of dinner, this is paying the check.)
Now that you’ve got a grasp of economics, you can see how economics constantly affects your life.
This next step is a little more nebulous. Perceived value must be more than perceived cost.
That sounds harder than it is. Let’s look at an example. Would you pay $50 for an ice cream cone? For most of us, the answer is “no.” It’s not worth it. Would you pay $5 for an ice cream cone? People pay that all the time. They consider the satisfaction they will receive from the treat. The rich flavor. The cool delight, and even the belly-filling completeness of the dairy. An ice cream cone is a thing of beauty for only $5.
At the right ice cream shop, between the service, the appearance, and the taste, a customer may think to himself, “This is a $7 ice cream cone, and I only paid $5.” When that happens, a repeat customer is born. Perceived value exceeds perceived cost, and what prospect wouldn’t want to win over and over again?
When I write copy, it’s to increase the prospect’s perception of value for whatever I’m writing about. Recently, a client wrote, “She really knows what she’s talking about.” That testimonial has value, but it has even more value if the person who wrote it is someone you value or trust. Some of their value rubs off on me.
Credibility matters. If a person you know recommends a product, you’re more apt to buy the product. As we become more digitized, more and more people look online and read reviews before they buy things.
Those positive reviews increase your products perceived value while a negative review does just the opposite.
Read over your website, your ads, and your recent emails. Are they increasing the perceived value of your product? If not, send me an email or DM. Only by increasing your perceived value will we find the prospects willing to pay the cost you’re asking.