UNDERSTAND PERCEIVED VALUE

 UNDERSTAND PERCEIVED VALUE

In school, we were taught to measure value using numbers: price tags, equations, and discounts. But in the real world of business, customers don’t simply buy based on numbers. 

They buy based on perception. They buy based on how something makes them feel.

This is what we call perceived value.

It’s not always about what your product is. It’s about what your product means to the customer.

The Bottled Water Lesson

Why would someone pay Ksh.150 for bottled water, when tap water is almost free?

Because the buyer isn’t just purchasing water—they are buying:

✅ Trust: Assurance that the water is clean, purified, and safe.

✅ Convenience: The ability to grab it on the go, without boiling or filtering.

✅ Experience: The cool branding, the sealed bottle, the prestige of sipping from it in public.

✅ Status: A signal of class—carrying a brand-name bottle feels different from filling a plastic jug at home.

The water itself is the same. The perceived value is what makes the price so much higher.

Why Perceived Value Matters in Business

Most small businesses in Kenya lose money because they try to compete only on price. They believe customers always choose the cheapest option. 

But in truth, people often pay more for what feels better, looks better, or saves them time.

A mama mboga in Eastleigh can sell sukuma wiki for Ksh.20.

Another vendor across the street sells the same sukuma for Ksh.50—because she washes it, packages it neatly in a clear bag, and even offers home delivery.

Same sukuma. Different value. Higher price. More profit.

The 4 Pillars of Perceived Value

To win in business, you must build these four pillars into your products and services:

1. Experience

People remember how you make them feel more than what you sell them. A clean shop, a polite seller, a smooth ordering process—these experiences build loyalty.

💡 Example: Why do Kenyans flock to Java or ArtCaffé? The food is good, yes—but it’s the ambience, music, and service that create the full experience.

2. Packaging

Packaging is not an expense—it’s marketing. The way you present your product tells customers whether it’s premium, average, or cheap.

💡 Example: Local honey in a recycled jar sells for Ksh.250. The same honey in a well-branded glass jar with a label sells for Ksh.600. Packaging is perception.

3. Convenience

People pay more for anything that saves them time, effort, or stress.

💡 Example: Uber boda rides are often more expensive than a stage boda—but customers pay because of convenience, safety, and tracking.

4. Trust

Trust is the currency of business. When customers trust your quality, reliability, and honesty, they will choose you even at a higher price.

💡 Example: A client may pay Ksh.5,000 for a lawyer to draft a document, even though a cyber café charges Ksh.300 for the same. Why? Trust in expertise.

How to Increase Perceived Value in Your Business

Improve Presentation – Upgrade packaging, shop layout, and branding.

Offer Extras – Add after-sales service, delivery, or warranties.

Build a Strong Brand – Create a story and image that customers connect with.

Master Customer Service – Smile, listen, and treat customers like royalty.

Focus on Consistency – Deliver the same quality every time; inconsistency kills trust.

Final Word: Sell More Than the Product

Business is no longer just about what you sell. It’s about the experience around what you sell. 

Customers don’t just buy the shoe, they buy the way it makes them feel when they wear it. 

They don’t just buy the food, they buy the joy of eating it in a clean, friendly space. 

They don’t just buy bottled water—they buy the security, convenience, and status that comes with it.