Tag: entrepreneurship

The Art of Value Perception: A Tale of Two Restaurant Promotions

The Art of Value Perception: A Tale of Two Restaurant Promotions

Introduction: In the world of business, perception is often as impactful as reality. This concept is vividly illustrated through a simple comparison between two restaurant promotion strategies. Let’s explore how these approaches can teach us valuable lessons about value perception and marketing.

Scenario Analysis:

1. The Direct Discount Approach:

  • Scenario: Restaurant #1 offers a 25% discount on a $60 meal for two.
  • Business Perspective: This appears as a straightforward and attractive offer, resulting in a direct saving of $15 for the customer.
  • Underlying Impact: The restaurant incurs an outright loss of $15 from their revenue. While it might attract price-sensitive customers, the long-term value creation is minimal.

2. The Perceived Value Strategy:

  • Scenario: Restaurant #2, instead of a discount, includes a free bottle of wine (listed at $25) and a dessert (listed at $6 each) with the same $60 meal.
  • Customer Perception: Customers perceive a saving of $37, significantly higher than the $15 saving at Restaurant #1.
  • Business Perspective: The actual cost to Restaurant #2 is only $10 ($8 for wine and $2 for desserts), creating a win-win situation. Customers feel they are receiving more value, and the restaurant maintains a better margin.

The Lessons for Business Owners:

1. Perception is Key:

  • The second scenario demonstrates how customers’ perception of value can be more influential than the actual price. By offering additional items with a higher perceived value, Restaurant #2 enhances the overall customer experience without significantly impacting its costs.

2. Marketing and Positioning:

  • Restaurant #2’s strategy is not just a promotional tactic; it’s a clever marketing and positioning tool. It shifts the focus from price to value, helping the business stand out in a competitive market.

3. Long-term Customer Relationships:

  • This approach can lead to long-term customer relationships. Customers are likely to return, remembering the exceptional value they received, rather than just a one-time discount.

4. Cost-Effectiveness:

  • From a cost perspective, providing more at a lower cost can be more sustainable than offering direct discounts. It’s about finding creative ways to maximize value while minimizing costs.

Conclusion: As business owners and entrepreneurs, it’s crucial to think beyond conventional discounting strategies. The art of value perception is about creatively enhancing the customer experience, which can lead to a stronger market position and more sustainable profits. It’s not just what you offer, but how you make your customers feel about what they receive that counts.

Call to Action: Think about how you can apply these lessons in your business. Are you ready to shift your strategy from cutting prices to enhancing value? Share your thoughts and experiences with us!

3 Ways To Build Your Business Online

3 Ways To Build Your Business Online

I am sure you have heard about small business owners who have made millions of dollars and have built their own empire. I’m sure you have also heard about the stories of people who have failed miserably.

It is important for us to understand that there is no one size fits all answer when it comes to building your business. There are different ways to build a business and if you want to succeed you need to find the right method for you.

There are many different types of businesses and each type requires a different approach to marketing and growing your business.

Brick and Mortar

The most common way to start a business is to open up a store front or a kiosk in a mall. This can be a very lucrative option but it does require some serious planning and some serious capital. If you don’t have the capital to invest in this type of business then you will need to look into other options.


Another option would be to open up a franchise. You can find franchises that sell products and services that you can run from home. This is a great option because you don’t have to worry about the overhead of running a store front. The only thing you need to do is make sure that the product or service you are selling is something that people are looking for.

Online Business

If you are looking to create a brand new business, then you should consider starting an online business. There are many different types of online businesses and you can choose the one that suits your interests.

A simple internet business could include affiliate marketing where you promote other peoples products. This is a great way to make money because you don’t have to spend any money to get started. All you need to do is sign up for an account with a company that offers affiliate programs and then you will receive a link to promote. When someone buys through your link, you will receive a commission.

There are many other methods to earn money online but the above three are just a few ideas. You will need to do some research to see which one works best for you.

Be sure to watch our “Wrong Video” …Everything you’ve ever heard, everything you’ve ever tried, and everything you’ve ever done — it’s all wrong.