Added Value: let's talk about this concept.
Have you ever noticed the price of potatoes versus the price of potato chips?
Potatoes are one of the cheapest things under the sun. You can get an eight pound bag for a handful of dollars.
But potato CHIPS? Oh no, now they're worth their weight in gold: that same eight pounds could easily cost you SIX TIMES as much. For eight or nine bags puffed up with air.
Insane, isn't it?
For a little slicing, oiling, spicing up, baking, and packaging?
Added Value and Transformation
What are we paying for, really? The chips surely don't have six times as much nutritional value applied to them in the manufacturing process.
So what is it that sets the tone and makes the difference in our perception of value between raw potatoes and finished potato chips? And how do we gauge the sense of value between a $4 and $7 bag of chips?
Productization,
Branding,
Transformation,
and
Convenience.
How could you apply factors like these to your own sales funnel? In product development?
Added Value and Perception
To the extreme side, a friend shared an example with me after I first spoke about this concept. In the Paqui Carolina Reaper Chip "One Chip Challenge" each individual chip was valued at $10 or more.
Note that in this instance, it is not the chip alone that determines the value: the activity around it creates more drama and thereby drives up the money the buyer is willing to part with. It isn't just about the chip: it's about the experience.