Today someone is going to pay $200 for a shirt at Nordstrom.
Someone is going to make reservations at Ruth’s Chris and will shell out $400 for dinner.
There is someone at The Domain right now shopping at Gucci and they will pay $1,500 for a handbag. Hopefully it’s not my wife!
Crazy? Maybe, but the truth is we all pay for intangible value all the time.
Consider Uber. If you move around Austin you’ve likely seen them in action. They are the app that connects you with a driver at the tap of a button on your smartphone. If you need to get, say from downtown Austin to Round Rock, no need to hail down a taxi on the street. Uber helps you make quick arrangements so you don’t have to wait in the rain, heat, or sleet. You don’t even need to have cash or physical credit cards to pay.
The real value of the service is not simply getting you where you need to go. The value of Uber is in the perception of time saved and the elimination of uncertainty, and the ability to know exactly where your driver is, and to track him with GPS as he comes to pick you up. As busy people don’t we place a premium on our time?
Most of the value of premium services or products like Uber, Nordstrom, Gucci, or Ruth’s Chris is created from things we really can’t see, intangibles such as a feeling, technology that enables a driver to be where you need them at the click of a button, the ambiance of a restaurant, or the experience that is created. All that is required by us, is to make an emotional investment in the brand and buy into the story.
Price and value are stories we tell and sell ourselves.
What story are your customers telling about your service or product?