The definition of ‘expensive’ is wrong.

As I haven’t ever bought a dictionary, I’ll list the first three definitions from a Google search (stay with me, it’s credible):

ex·pen·sive
1. Requiring a large expenditure; costly.
2. Marked by high prices: expensive stores.
(The Free Dictionary)

ex⋅pen⋅sive
[ik-spen-siv] –adjective entailing great expense; very high-priced; costly: an expensive party.
(Dictionary.com)

ex·pen·sive
Pronunciation: ik-ˈspen(t)-siv
1: involving high cost or sacrifice
2 a: commanding a high price and especially one that is not based on intrinsic worth or is beyond a prospective buyer’s means b: characterized by high prices
(Mirriam-Webster)

As you can see, the definition of expensive revolves around the concepts of ‘cost’ and ‘price’. And in most cases, these are referring to monetary value.

If I was to write my definition of expensive, it would be this:

ex·pen·sive
a monetary payment which is greater than the perceived value

The key idea here is the perceived value. There are a number of ways perceived values may be measured, including (but not limited to):

Monetary value. Under the original definitions, the services of a top-notch lawyer would be considered expensive as there is a high price attached to their service. However, there is perceived value if this lawyer saves you an even greater amount in fines (not to mention jail time). This would make the lawyers fee seem inexpensive as value is delivered in fine savings.

Emotional value. Jewelery does not come cheap and is often referred to as expensive. However, the right piece of jewelery will elicit an emotional feeling and attachment that eclipses the price tag. In the long term, this emotional value will override the monetary cost of the jewelery and render the price tag inexpensive.

Convenience value. Picking up a loaf of bread at the service station instead of the supermarket may cost double and be considered expensive. However, if this saves an extra twenty minutes on the way home from work this would be considered a very small price for the time saved – making it inexpensive.

Even thought the ‘cost’ or the ‘price’ may be high, the perceived value that product or service delivers makes it inexpensive. Keep in mind that value is personal – the lawyer might not have skills that are valuable to that case, the jewelery does not hold value after a break-up and the bread may not be valued for someone who just visited a supermarket.

So, if your target market starts calling your product of service ‘expensive’ you should be worried. You are no longer delivering them something that they perceive as value. You can respond by dropping prices all you want but unless that offering has a clear and distinct benefit for their situation then you will be classed as expensive and no longer a consideration.

However, if you create perceived value you will never be too ‘expensive’.

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