Ken Uchikura Newsletter Vol. 19

Penny Wise And Pound Foolish

Dear Reader,

If you try to save money by buying something cheaper, only to find out later the one you bought was not like the one you wanted, you may have saved money but you really did not get what you wanted. You regret your decision to buy something based on the price alone. This happens a lot and you ended up buying the one you wanted in the first place. You actually could have saved money if you bought want you wanted to begin with.

That is a true definition of “Penny Wise And Pound Foolish”. But in reality, it's not that simple. Sometimes all you needed was the cheap product and it worked out fine. Sometimes, you buy the cheap one and then you decided to buy the real one and find out they are actually not much different. People including myself will not know which is the best one to buy. And since we usually buy only one, you will never know what another one would be like.

From the seller’s point, you want to sell your products at the highest price possible. But the higher the price, the harder to sell. How do you covey your value to your customers? Here are somethings people try;

Free shipping and free return. (Risk-Free Purchasing)
Referral program. (Many credit card company offer incentives)
Advertisements (Traditional Media and the Internet)
Trade Shows and Seminars

“Penny Wise And Pound Foolish“ is an advertising term for people selling products are relatively higher prices. Higher prices indicate that the product has something others do not. Unless you really have a product that has something of additional value, you need to make sure you at least make people think it has something special even though it doesn’t. That is what advertisements are for anyway.

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