Rachel: Hello and welcome back to the Marketing Whisperer podcast. I am your host Rachel Calderon, and unfortunately today Kathryn Calderon will not be on. However, I do have a special guest and her name is Dr. Nilda Perez. She is from the Foresight Strategies Group. Welcome Dr. Nilda.
Nilda : Hi, how are you?
Rachel: How are you today?
Nilda : Very excited to be here.
Rachel: Oh, I’m glad. The reason I am so excited that I have you on today is because I wanted to talk to you about prices. I know that a lot of our audience is always looking for that how much do I charge for my product or service? And today is the day that everyone is going to be listening to your expertise and giving us some value. So Dr. Nilda what exactly is the high perceived value or value proposition.
Nilda : So value proposition is what value you as a company, as a solo preneur what value do you bring to your clients? Of course when people buy things, they need to understand what value that brings to them. No matter what it is, it doesn’t matter what it is, whether that’s a bag or groceries or shoes or a motorcycle, doesn’t matter. What value does that bring to them? So the client needs to connect from that perspective.
Rachel: Okay Great. So now you have placed a value on the client. Now how do you in turn take , your expertise or schooling and all that you’ve learned and package it into a price because you have to take into consideration what are they going to pay for it as well as what you’re worth.
Nilda : So there was so many theories on that and I have to tell you, I’ve spent years and years and years with mentors, marketers, and so many people that have so many different perspectives on that. I’ve heard everything from, it doesn’t matter, you decide what the value is and you can actually pull that from thin air to you really have to calculate what your pricing and your prices have to be comparable to what other people are charging. But I have to tell you my theory on that is I think there’s a combination of several different things. Yes you do make up the price. Absolutely. But you’ll make up that price based on value that you feel that you’ve put into that. So I’ve had many clients that want to price things and are not really sure. Like what should I price this? Because what I do is of course I help people design the future and what we do is a series of different we use different tools to help them design their products or their services or their company to be innovative to be different. And for a noncompetitive market space, now, the problem is that once, that non competitive market space, it’s very difficult for them to price things because there’s not a market that is actually doing that in order for them to come up with their prices. You would think that that’s the drawback, but it really isn’t.
Rachel: I’m assuming that when you’re in this arena, you’re still solving a problem. So it does have some sort of value.
Nilda : It absolutely has value. As a matter of fact, it has more value. The value goes up because with value, innovation is low cost to you in high perceived value, high perceived value because this is this one thing that they can only get from you. So your value goes up. So rather than choose a random price from like nowhere, you have to take into consideration what it took for you to actually create this, create this space, create this product, this service, this new thing. What did that take? And then you start pricing based on that.
Rachel: So this is where we’re not talking supply and demand because at this point it’s a new market, it’s a new place. So there’s really no supply and demand. You’re basically telling me that it’s more about the value. What’s the value of that product to that person and then your worth what you feel is worth. So you combine all of that. Am I correct?
Nilda : Yes and no. Because here is the thing, you do have a market because with what we do, we’ve already found a market. There is a market for it, it may not be your traditional market and we may not be only the market that you will marketing to before we have found an untapped market. So there is a client or a market for clients that have not typically come to you. So let me just give you a for instance. Let me give you a for instance. So let’s say that you are selling a pocket books, hand bags. So your selling bags and your market has always been this. There’s like maybe this clientele that can afford handback so your handbags are priced anywhere between $40 and $150 so that is a certain type of clientele. However you found that there is another type of clientele that wants high ticket items, so you can develop a handbag that is a high ticket item that is those handbags are over a thousand dollars, probably two thousand three thousand dollars, but there you’re giving them something that’s completely different. So it is a handbag, it may be a quality, it may be a label. That market may not have come to you for the $40 bag. They wouldn’t do that because that’s not what they’re interested in, but they’re interested in you customizing something for them and they’re willing to pay more. So now you found that market still handbags, so it’s not a different product, but it’s something that’s customized to this clienteles needs. Does that make sense?
Rachel: Yes. I’ve had clients because I am in the marketing space and I’ve noticed that sometimes people like underprice, so I’ve had clients come to me and they’re like, well first of all this is worth, I look at the product or I look at what they’re offering, and they come to me, , like, well, how could I make more money? Okay, well first thing I tend to do is look at what they’re offering. After that, I asked them several questions like do, you analyze their business, what they do, how much time they put in. And then I raised the price and sometimes I’ve raised the price to let’s raise a double. And they’re like, what? No that’s a little too sketchy, , I’m not, I’m not sure if the market, , I’m already selling at a steady flow at this price. So there was this lady who came to me and she sold jewelry and it was a non for profit, but she wanted to sell more. She was hoping to make more money, so I said, well first of all, what you’re offering is beautiful. And I said, let’s double the price from 20 to 40, so every item I said let’s double it. After some time I think of after 30 days she said that her sales actually went up. So can you explain to the audience why? What’s the psychology behind that? Because that is the most intriguing thing to me that although we doubled the price, it just seemed like now, her product had more value. It was, it was something that was, wow, you know what, not only am I getting a good piece of jewelry, but I’m also helping the cause for this non for profit was the cause. So can you explain the psychology because I also know that you have a background in social work and you’ve used that to your advantage in helping many customers.
Nilda : Absolutely. Look, I mean, and this goes with anything or with anyone, you go to the dollar store and you buy something like a pair of earrings and they’re beautiful and you love them, but you’re not going to treat them with the same delicacy as maybe another piece of costume jewelry that you may get from, let’s say Pandora or Lizzie James. Because for that Lizzy James Bracelet, you may have paid $120 versus the bracelet that you bought from the dollar store. So do you see high perceived value? Does it mean that the quality is better? Maybe not. So what happens is you’re not going to treat it the same way because it doesn’t have the same value. So you want to look at your prices, not just let me just raise it up so that I can have more value. On the one hand, that’s true, on the other hand is what do you want your brand to represent? And so that’s what you and I work so well together with because you do that marketing. I do that positioning. So when I position a accompany to raise their value, you can come and you can market that and we’ve done a great job seamlessly going back and forth with that because then I can come to you when they can say, oh, Rachel the price has increased and we have even made that decision together to bring more value. So let me give you a for instance. So the other day I was working with a client and the client was saying my is so much better than my competitors and the quality is better. The production of it is better. The starting point of what I’m doing is better and the quality overall quality is better. People come here, it was a restaurant. People come here, they sit here, they taste my food, they love it. They go, oh my goodness, it’s fresh to boot. I have other people, chefs from other restaurants come and say, you know what? I love the quality of your food and I know the quality of your food because I’m a chef that’s such and such and we don’t have this quality. Which drives them crazy, but anyway, fast forward she kept saying for my product is cheaper, and I said, well that’s the problem. Why is your product cheaper if you have more quality? “But I don’t want to lose my customers.” On the contrary, when you raise your perceived value, because if you say, well, it costs more just because it costs more, but if you know you’re giving more value, why are your prices comparable to that value?
Rachel: Right, exactly. And I know that in a lot of companies they charge a lot of money and I know a few chefs, as a matter of fact, they’re on Airbnb and they charge, I think it’s like 300 or $400 for like a couple of hours to have an experience. In other words, they come to you and they give you this amazing experience. You would say, well, why would you spend that kind of money? Well, it’s the overall of what they bring to the table. They shop for you, but they bring the food, they cook it, they teach you how to cook it. They give you a nice ambience because they bring all the table settings, everything, so they bring you that experience. So now of course the experience is going to cost you more. It’s certainly going to cost you more. And for those of you who do not know, Dr. Nilda and I were partners together in the Foresight Strategies Group. She is the founder and CEO and I am actually the CMO. I could actually say I am not only the CMO of her company but I am also a client, although I have my own business we’ve been able to merge my marketing expertise in with your clients and we’ve just merged so much together and we’ve done so many wonderful and amazing things together. And so I just wanted the audience, to know that number one, because I don’t even think I introduced you properly, but I just find that this topic is absolutely an important topic for this audience that is listening in on us today. Because I know that if you’re going to give them an experience, you have to charge that, right? I don’t feel that there is a need to be afraid to charge. It’s the experience that you’re giving to them. We’ll give you an example guys. Disney world, when you go over there, everything is in pristine I mean it is precise. Everything is timed when you go there and since I’m very logistical and analytical. I notice the details. Okay. And one thing I noticed is like every couple of feet, there’s trash cans every couple of feet there’s something to eat every couple of feet there’s another ride. I mean they have everything from the parking. They have time, they tell you what slot and of course it makes it a seamless experience. So of course they’re going to charge you for all of that. They have characters right there. They have the characters over here. Then they also have a character over there. They have all these characters all over the place. So you could take a picture here while someone’s taking a picture over there with another character. I mean, it’s the whole ambiance. You’re literally in like almost like toy land or like a whole other world.
Nilda : Well, when you go there they’re focused on the experience and you’re paying for that experience. I love the fact that you said that this is how you think. And you notice all of these little things and your personality trait is the ISTJ. You notice you see it. It works well for you. But I have to tell you that’s the one thing that they’ve been, that Disney has been excellent in doing. They tell they time, they tell you how long you’re going to be in that line. They do not lie and it’ll probably either be exactly that timeframe or less is the idea. And the thing is they don’t just keep you in line and your board on that line. There were still things going on around you because they have everything time and there’s a logistic for everything. So you’re not just standing on the line bored and people irritated because you’re standing on a line, but while you’re standing on that line, you’re actually being entertained with whatever’s going on outside until you get into that ride or into that next experience. So they literally keep you captured from moment to moment. But bringing that to the solo preneur, bringing back to the small business, this is how it needs to be. You need to be focused on A. experience, B, I remember, with my nephew, we talk about, from order to plating to table, that has to pristine, that has to be precise and exact. But in the meantime, you want to keep that person in that experience. So they have to be having some sort of experience, whatever that may be. You can decide that I know that that’s what we do with our clients. We make that decision together. We helped them come up with ideas, and this is what makes them different because I mean, oftentimes what do you do? You sit in a restaurant, if you’re sitting there by yourself, there is no experience. You better bring a book. You’ve got to bring something because from the time that you ordered to the time that you get your food, you’re just sitting there staring at a wall. What if you can offer an experience for, let’s say the solo eater or if there’s a couple, what if you can create an experience while they’re there together while their friends or you’re there as a couple. So see now that you’ve raised that perceived value, so you have to ensure that you’re offering more than just whatever your service or product is at that very moment. You’ve increased your proceeds value, you can increase your price.
Rachel: And I attest to going back to Disney, I was on a ride for three hours waiting on that Pandora ride three entire hours. Now it said from the beginning, the moment I got to this point, she says, if you get to this point, it’s three hours. If you get well, if you get to this point, it’s one. If you get to this point, it’s two of course it hit me that I was at the three hour mark and I must say, but the whole time, the entire time, like you said, I was entertained to the point that I didn’t even recognize that I was on this line for three whole hours. Leave me in a supermarket. Okay. Standing online for three hours and you very well know is going to be a problem. Why? Because I’m hungry. I can’t eat the food because it’s either frozen or cold or I haven’t paid for it, so I can’t start eating it. Okay. At this point, they have the same magazines. Okay. Because it’s there the whole month and everything is just the same. There is nothing in between that’s keeping me entertained. But in Disney, I forgot that I was on this line because of course when you’re there, you’re there giving you this mist. They have fans going. I kid you not. I think that they’re like google. They’re listening in on everything you say because you say it’s hot and all of a sudden a mist just comes out. Then you move along on the line that all of a sudden now you’re in this world and then you see trees and you and you just start to get like so in immersed and as a matter of fact, we were talking about immersive theater on your show with one of your interviewees and it’s that whole experience that you just get so mesmerized and by the time it, you come out of the ride and you’re like, wow, oh my gosh. So nowadays especially our customers really need that experience in order for us to be able to raise that price. And when we do raise that price, they won’t even notice. I kid you not. They don’t notice, especially when they’re super dependent and they’re really enjoying the product. I go back to Apple, when we first started with apple, you did not find a phone for a thousand dollars, but it was only like it was $300 I recall. Clearly. The first one was like about $300. Now they have no problem, but you’ve become so dependent on that phone and the experienced and the seamlessness between phone and laptop. Especially if you have a MAC product. Okay. It’s so seamless that you’re like, I can’t leave home without it. I can’t do without it. I’ll buy. I’ll spend a thousand dollars. It’s okay. It’s worth it to me.
Nilda : So and taking that to the next level, people don’t realizes so that apple and people go, yeah, but my company’s not Apple, but let’s talk about toms shoes. They came up with a concept to be able to put shoes on all of these third world countries because kids were dying because they will get any parasites through there feet. They came up with a concept, so you pay anywhere between 50 and $80 for a pair of toms shoes, but here’s your experience. You know that those 50 to $80 shoes is not only going to put shoes on your feet and you already have like another 30 pairs of shoes in the closet, especially if you’re a woman, but you know that you’re also being charitable because you’re going to be saving some child’s life somewhere in the world, right? That’s the experience you see you know that you’re being charitable. You’re not just buying a pair of shoes for you, but you’ll possibly buying, but you’re definitely buying a pair of shoes either for one or several other people, several other children. So when you think about that, that’s the experience. You go online, you buy a pair of shoes, you’re putting shoes on somebody else’s feed, you’re saving a life beyond putting a pair of shoes or somebody else’s feet. You’re actually saving a life. Now you’re also being charitable. And so if we could all find that niche and that’s what we specialize in, that’s what I love about what I do is that it goes beyond just a business plan, but to come up with that experience for that customer. And that customer will be a customer for life because you’re giving them an experience, you’re giving them a reason to buy whatever it is that you’re buying. So in Disney, it may be entertainment and entertaining your child or bringing you back to your childhood because there’s a lot of adults that go there that have no children. So bringing you back to your childhood, whatever that is, that experience is what they’re paying for. Oh, so whether you’re a Disney or you’re buying a pair of shoes or your in a restaurant. What experience is that going to bring you? What are you gonna feel when you buy this? And it has to be more than just, it’s a good price. It’s cheap. It’s cheaper than any other. Because I tell you were emotional buyers and that emotion is going to be the reason why we buy into something and that emotion can be erratic. It doesn’t necessarily have to be the same. It’s a different emotion for every other product that we buy and that’s what we’re buying into, so be cognizant of that when you’re going to price. It has to go way beyond just this cheaper than everybody else because it’s cheaper, is not necessarily better. It’s like buying that bracelet from the dollar store versus buying it from Lizzy James, or getting that dollar bracelet from your grandmother who then passed away. Now that has a sentimental value that brought up that value of that dollar bracelet. Do you see? So what experience do you want to attach to your product or service? What is that emotion that you want to tap into.
Rachel: And in this case it is attaching a price to those emotional, to that emotion, because really that’s what this show is about today is about attaching a price to that emotion, tapping into that emotion and then charging for that experience. Like you said. I want to thank you Dr. Nilda for being on my show. I am excited that I’m usually on your show, but this is the first time that I had you on my show and I’m sure that the audience got a lot of value. Guys, we have a fabulous magazine that comes out every month. We have several contributors every month and we put a lot of value in this magazine. There is a ton of value, golden nuggets I call them. So where can they go to get that newsletter or well they’ll get the newsletter and then from the newsletter they’ll get the magazine. So can you tell them Dr. Nilda.
Nilda : So if they go to drnildaperez.com they can go over there and see my show. So Dr. Nilda Foresight show DrNildaPerez.com/newsletter Just if you go on drnildaperez.com. You’re going to get a wealth of information there and then I have to tell you our magazine, we have amazing contributors. We focus on one theme and look at that theme from different perspectives, different people, different contributors, bring different things to that particular subject. And I’m very proud of our magazine and we have an amazing, amazing graphic artists who has done a fabulous job with it. So talk about experience.
Rachel: That’s Kathryn Calderon
Nilda : So talk about experience. Here’s the thing, she visually gives you that experience and that magazine from cover to cover. And we’ll talk about that. That’s excellent.
Rachel: So I want to thank you Dr. Nilda again for being on my show and to everyone to visit this show or her show. You can go to RachelCalderon.com and I have links to get to her newsletter on my website as well. As if you go to her, you’ll see my information there, so we want to thank you and we will catch you next week. Bye.