On the 13th October 2013, world famous British Street Artist, Banksy set up his market stall in New York's Central Park...For those that don' know, Banksy's work is truly unique and retails for around $35,000 a piece - if you can get it off the wall or building it is applied to...
Anyway...
To get things off to a flying start, he was offering his pieces of art at just $60.00 each - so he would be sure to sell out and have a queue around the park of eager buyers lining up to get the deal of the decade...
It didn't quite go to plan...
In total his takings for the day were just $420.00 and that included someone who haggled and got a couple at half price too...
He didn't sell much of anything - and took plenty of stock back home with him - but why...?
Money is simply a token of Reciprocation...
Fiat Money has no intrinsic value - it is worthless unless value is attributed to the transaction in which it features. It is up to us to define that level of value through the services and products we provide.
Everyone has a "comfort value" in our minds - an amount of money that we feel is somehow appropriate for a goods or services that we buy. We will not pay more than this amount and interestingly we probably won't pay much less than this amount either...
There is a "comfort value zone" of perhaps + or - 20%...
Branded products can tend to get around this because the Brand itself gives us comfort; a matched pair of Holland & Holland Shotguns for £500 - is a bargain. We may still however think that they have been nicked...
We are not in the business of building a Brand, however, we are in the business of building a Reputation from selling an intangible & invisible service OR a product sold in the context of an intangible or invisible service.
For example - if you see an advert for;
Laser Eye Surgery - $17.50 - buy one get one FREE...
Would you actually go for it...?
Of course not - because our "comfort value" for this is a lot higher - we want to pay at least £1000 for someone to laser our eyes - it suggests that they are more skilled and somehow trustworthy...
Banksy didn't sell many pictures because he was too cheap; the deal was too good to be true and therefore the $60.00 didn't match the comfort value of the product and therefore the buying decision was NO...
So what is your "Comfort Value"...?
Your comfort value is whatever level of Value, Service and Quality you choose it to be. If you are getting price push back then it simply means that you are not unique, different or special enough to warrant a higher price being paid..
Remember money has no value apart from that which we choose to ascribe to it - we get paid for the Value and Results we deliver and the perception in teh minds of our clients...
How to increase your Comfort Value...
1. Define your Uniqueness - what is it that makes you different, what is your level of positive differentiation in the market...?
2. Market Benefits - not features. Tell people the consequences of buying from you for them, not just how marvellous you think you are...
3. Be a Rockstar - deliver on your promises EVERY time. Marketing wins a client but service keeps them and that's where profit is made.
4. Training - get your team to believe in your Vision, Mission and Rules of the Game so that they can grow the business for you.
5. Comfort - build huge comfort value for your prospects, and price accordingly; you may be losing business because you are too cheap - the Banksy Effect...
Have a great week...
David Holland MBA is an International Author, Speaker and Business Coach. To find out more about how he and hisTeam can be involved in your increased success - simply drop him an email at davidholland@resultsrulesok.com
See more information on the website - www.resultsrulesok.com
You missed a point. Banksy IS the brand. They didn't sell because he didn't tell anyone it was HIM selling them. Banksy (and a hell of a lot of other current artists) are extremely good marketers, to the point that their names alone can sell their work. Put "Emin" on a bucket, and that bucket will be worth more then a mansion. By keeping his anonymity, he withdrew his brand from the work, and looked like any other shmuck with a spray can. Seriously, I can put up that same stall in Camden, with identical work (and I do mean identical), and sell them for £20. and nineteen of those quids would cover materials. In a marketing sense he's shown his worth as a brand, since his art only sells when it's seen to be him behind it, but he's shot himself in the foot as an artist by showing us his work has no value.
ReplyDeleteThanks Lewis - I think we agree.. :-)
ReplyDeleteValue is in the eye (and pocket...) of the beholder all art has zero intrinsic value; value is something we ascribe to products and services and Price is one determinant of the percieved Value.
It's called the $5 Milkshake Effect - taken from the movie Pulp Fiction.