Discover why aligning your pricing strategy with perceived value can catapult your optical business ahead of competitors who rely on cost-based pricing. As with most things in life, it's all about how it's perceived.
Value perception pricing is a strategy that focuses on setting the prices for your frames and lenses based on the perceived value that a product or service provides to the customer, rather than the cost of producing it. This approach recognizes that customers are willing to pay more for products that they perceive as high-quality, innovative, or exceptionally beneficial.
By aligning your prices with the value that customers perceive, businesses can better meet customer expectations, build stronger relationships, and enhance their overall market positioning. Think of it this way, do you want to be known as the optical store with "cheap glasses" or would you rather your patients think your
Cost-based pricing, which involves setting prices based on the cost of producing a product plus a markup, has several limitations. This method can lead to undervaluing your products, missing out on potential profits, and failing to communicate the true value to customers.
Additionally, cost-based pricing can result in a race-to-the-bottom scenario, where businesses continuously lower prices to outdo competitors, potentially compromising product quality and brand reputation. We hear from ECPs all the time trying to compete with big box retailers. Value lenses will always have a place at every optical store, but being able to explain the benefits of how premium products can be worth the investment to patients will win out the majority of the time if done properly.
When prices reflect the perceived value, customers feel more satisfied with their purchases, as they believe they are receiving fair value for what they are paying. This satisfaction can lead to increased customer loyalty, repeat business, and positive word-of-mouth referrals. All of these are good things for your optical dispensary.
Moreover, value perception pricing helps customers understand and appreciate the unique benefits and features of a product, leading to a more informed and gratifying buying experience. Your patient that spends a good chunk of their day going back and forth between indoors and outdoors will love Transitions XTRActive Polarized lenses. Your patient that drives for a living or has long commutes for work will find value in a Shamir Driver Intelligence progressive.
Many leading companies have successfully implemented value perception pricing. For example, Apple is known for its premium pricing strategy, which aligns with the high perceived value of its innovative and high-quality products. Customers are willing to pay a premium for the brand's reputation, design, and technology.
Similarly, Starbucks charges higher prices for its coffee compared to competitors, leveraging the perceived
You can even implement this strategy for your single vision patients with lens designs like the Eyezen or Kodak PowerUp. Add further value by offering niche lens designs like the Shamir Golf for avid golfers or premium
occupational designs like the Shamir Computer & Workspace. By positioning your lenses and services as solutions your patients experience everyday, you'll set yourself apart from the rest.
To implement value perception pricing, begin by understanding what your customers value most about your products. Conduct market research, gather customer feedback, and analyze competitors to identify key differentiators and unique selling points.
Next, communicate these value propositions clearly through marketing and sales efforts. Ensure that the perceived value aligns with the price, and be prepared to adjust based on customer response and market dynamics. Continuously monitor and refine your pricing strategy to maintain its effectiveness and relevance.