But then the product manager in me asked the classic question "What value does this boot provide me and would I be willing to pay $160 for it?" We'll let's see here's the value that it provides:
- Comfort - Way more comfortable that crutches
- Prevents excruciating pain when bending ankle - That's pretty valuable, who likes pain?
- Reduces Healing time - by preventing me from reinjuring myself I can get to normal fun activities much sooner
So now I thought to myself "Is the boot worth $160?" and the answer is YES! Also, if you wear glasses or contact lens, think about how much those cost to make vs. how much they charge.
I would also say that perceived value has an emotional side to it. Think about all those Apple fans who have an emotional relationship with their iPhone, iPod, MacBook, etc. That increased emotional tie leads to higher perceived value which ties into a higher price. As you design your product, think about the emotion you want your customers to have!