The Water Bottle Theory and How it Relates to Your SMM Pricing
Before we start, you Dasani drinkers get out of here, we are talking about REAL water bottles...
Just kidding (sort of), have you ever actually heard of the water bottle theory?
The water bottle theory is an analogy that compares the value of a bottle of water in different situations to how a person's worth can vary depending on their environment. The theory states that the same water can have different values depending on where it's purchased.
For example, a bottle of water might cost 50 cents at a supermarket, but $2 at a gym, $3 at a movie theater, and $6 on an airplane. Why? Because that's the effect the environment has on the SAME product.
Let’s take this one step further. A few months ago, Erewhon, a high-end grocery retailer in California, went viral for selling a single strawberry for $19. Yes, you read that correctly...a single strawberry. This strawberry is sourced from Kyoto, Japan, and is supposedly one of the best-tasting strawberries in the world. But let’s be real, does it really taste that much better than a standard strawberry? That’s up for debate. The truth is, that Erewhon knows its audience, and they know they can charge a premium because their customers are willing to pay for exclusivity and perceived quality.
On the flip side, Aldi, a budget-friendly grocery retailer, chimed in on the conversation, stating that their organic strawberries cost 32 cents each. Two drastically different price points for the same type of product. The difference? Branding, audience, and positioning.
Soooo, what does this have to do with your social media management pricing?
Where are you charging your clients? Are you setting your prices based on the value you provide, or are you just trying to match what your competitors are charging? Because here’s the truth: you don’t have to price yourself like everyone else.
Not your competitors and where they are! You can be the Erewhon of SMM, you can be the Aldi of SMM, or someplace in the middle. Our point is that you set your value and you have to craft custom prices around YOUR unique offers.
The key is to own your pricing:
If you want to charge premium rates and shoot for those high-ticket clients, back it up with premium service, exclusivity, and seamless client experiences. This can be great for those working with luxury restaurants or interior designers.
If you want to be budget-friendly, emphasize your efficiency, streamlined processes, and high-volume service. This is great for those of you who want to work with small businesses or local community businesses.
At the end of the day, your prices should be a reflection of your uniqueness and the clients you want to attract. YOU decide your value!
So, the next time you hesitate about your rates, just remember: if a grocery store can charge $19 for a single strawberry, you can absolutely charge what you’re worth.
