I’m playing golf at the Belfry on Friday.
It’s also been raining torrentially for the last 24 hours, and I’m hoping beyond hope that it stops before we tee off.
After all, golf’s a lot more fun if you don’t need to swim at the same time.
But anyway, it should be a good day, I’m playing with a few Private Clients, I’ve booked the Brabazon at the Belfry and we’re all really looking forward to it.
(Now before you go thinking that this is all about golf, think again, there’s a really important lesson in here for all business owners).
If you’ve been to the Belfry before, you might know that they actually have three different golf courses there – The Brabazon, The PGA and The Derby. To play on the Brabazon, you’re looking at £160, in comparison to the Derby, which costs just £45.
At our monthly meet yesterday, I was talking to one of our other Private Clients (who has no interest in golf) about this and he was amazed at how they’re able to charge £115 more for exactly the same thing. After all, they’re both golf courses, they’ve both got bunkers, greens and 18 holes.
The answer is pretty simple.
The Brabazon is one of the most famous courses in the world, having played host to the Ryder Cup four times (the most famous golf competition in the world), more than any other golf course on the planet.
The perceived value of playing on the ‘Brab’ is far higher than playing on the Derby, and consequently, golfers are happy to pay more in order to play on it. The course is steeped in history, and for golfers is a privilege to play on the same course that their heroes have played on and drive the famous 10th green like the great Seve Ballesteros or hole the winning putt on the 18th like Sam Torrence.
Such a privilege that it comes with a price tag to match. And that’s the little thought I’ve got for you today: what can you do within your business to increase the perceived value of what you do, allowing you to charge more for it?
A more straightforward ‘business’ example of this comes in the form of Private Client and all-round nice guy Gary Baker.
Gary runs Swagger & Swoon, a company specialising in men’s fashion, and he does a lot of wedding-related stuff, including wedding ties. A tie’s a tie, right?
Well, yes. But Gary is still able to charge considerably more money for his ties than you’d pay on the high street or from other online retailers, for the simple reason that he’s able to guarantee that your tie will perfectly match the colour of the wedding colour scheme, the bridesmaids’ dresses, or pretty much any other colour you want.
The perceived value of this is huge, and Gary’s able to charge more money as a result, whilst still selling the same product that his competitors are making less on.
It’s a thought for us all – what additional perceived value could we introduce to our product or service that allows to charge higher prices? (This sort of thing might not come to you overnight, but it’s something to think seriously about).
Right, I’m off to get a new golf glove (and maybe an umbrella and some waterproofs too…).
P.S. Quick reminder, the early bird price for tickets to the One Day Spectacular that I’m speaking at on June 29th expires on Friday. It’s at Drayton Manor (coincidentally, just round the corner from the Belfry) and I’d love to see you there.