I was in Portugal, in the Algarve, for a few days this week. I was having lunch when I heard some tourists speak about how cheap they found some of the local property.
One member of the group commented that “it sounds too good to be true. You get what you pay for”. You hear this a lot, but is it true?
A few days ago, I was reading an article, where a group of researchers went to a restaurant in New York. Each group was eating the same meal, but one group were charge 2x for the privilege.
The group getting the more expensive meal, claimed higher satisfaction, when rationally speaking, the other group got the better deal.
You might assume, one group could be lying. In fact, various researchers have found that paying a higher price, activates pleasure hormones in our brain, which actually changes how we experience food or drink.
As I spoke about before people thought a $55 cake was much better than a $15 cake……even though it was in fact the same cake.
They probably weren’t lying, merely that being told they were eating something more expensive, released endorphins and other pleasure hormones.
Many of my friends and associates, have seen higher customer satisfaction after they charged more! One lawyer friend of mine was amazed at how customer satisfaction increased after he doubled his fees……for the same service.
So sometimes, we really do get, what we don’t pay for. So perhaps next time you go shopping, just feel and taste, before you buy.
You might just find yourself buying a cheaper version, and you can invest the rest into your future financial security.
As an aside, I am now on Twitter as of a few hours ago. You can follow me here.