Are "value" and "price" related?

April 22, 2010 Off By Chris Hinton

This is something of a theoretical question, although I have a few ideas germinating that might make it less academic at some point! Those of you who have published ebooks, written training courses, and those of you who have bought such things please answer me this: are value and price related?
Let me explain myself a bit. Say you see a few people offering website basics ebooks/training courses. The sort of thing that takes you from “I have no idea how to set up a site” to knowing what is required from a technical point of view, what tools are available to help actually write the site, and tips on how to make that site accessible to as many people as possible. Those people are offering their courses at different price points ranging from £1 to £50. Does the price affect your perception of the material’s value?
In my own mind I think there must be some sort of sweet spot. £1 seems to say to me, “I want to make money from this, but I don’t really think it’s that good”. £50 displays immense confidence that the material is good enough to command that price (and I’m aware that some ebooks/courses cost a LOT more). My dad once told me, “if you pay dirt cheap prices, you get dirt”. Does that apply here? I wonder if people look at an ebook and say, “if it only costs £1 it must be rubbish”, or am I way off track?
I’d love to know what you think. I’m really aware that my thoughts are sort of half formed, so please feel free to contribute in the comments and help shape the discussion!