The Virtual Goods summit at Standford recently brought up an interesting point about what makes some virtual items move so well and be priced at certain levels. Part of the answer brings up something that can be used in any marketing situation, and that is "intention."
One person on the panel referred to flowers presented virtually online that had much more value to them based upon the "intention" behind them. The other major factor was if there was the desire for an online relationship or friendship. Flowers offered in this context had more value and could be priced higher than one just put up as a symbol, or for whatever reason.
I like this idea of intention. There is value there - scarcity. Certain intentions are more valuable than others. To want to get to know someone is much more valuable than someone just saying hi.
The point is that pricing has built into it why the person wants to buy something. I'm talking anywhere here, not simply virtual worlds.
In our products or services online, think of pricing in terms of why someone wants to buy what you're offering. The more noble the intention, the higher the price of the product or service can be offered. That's how people think and act.
Not too many men are going to try to impress their wives with a $3 bouquet of flowers for their anniversary. It's the intention or reason behind it. In other words, intention has a certain emotional value that then equates to pricing. It's something to think about in your marketing endeavors.
Pricing our goods or services goes beyond what their makeup is. It goes to the heart of the "why" of it. Learn the value of that and you could price things at much higher margins than you are.
Great Article. Value is about meaning. $ is a medium of exchange. Higher $ value will imply higher value. The trick will be how to create higher value in an enviorment where cost of production is near zero, and there is no scarcity.
Posted by: sivam | June 26, 2007 6:34 PM | Permalink to Comment