How the “Veblen Effect” can help you… · Contentpreneurship.com (FREE)

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14d ago in General

How the “Veblen Effect” can help you…

Although it may sound contradictory, increasing the price of your community may not have the effect you think it will have.

Many people have a subconscious belief that the more something costs, the more valuable it is. This phenomenon has been demonstrated time and time again across industries.

For instance, Tiffany & Co. once struggled to sell their engagement rings, even though they were high-quality. Their solution? They increased the price. Instead of discouraging buyers, the price hike made their rings appear more exclusive and desirable, transforming them into a status symbol.

Similarly, if you’re pricing your community at what you believe to be super cheap and way less than what it’s valued at, people may get the impression that “it’s cheap for a reason”—in other words, it’s not valuable or worth their time.

This is called the Veblen Effect, and describes a situation where higher prices leads to greater demand as the product / service / your community is perceived as more valuable.

So, if you’re struggling with conversions on your about page, consider taking a cue from Tiffany & Co. Although it may seem counterintuitive, increasing your price could elevate the perceived value of your community. This simple adjustment could position your offering as more exclusive and premium—making it something people aspire to join.

Let me know how it goes for you‼️

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