Everything I Learned About Value, Pricing and Positioning from a Day at The Spa!

Yesterday was my birthday, and we celebrated with a trip to Champneys in Tring—a luxury spa I’ve now visited three times. Each visit has been a chance to relax, reflect, and reset. But this time, something felt different.

This year, we booked a January special offer, paying about half of what we did in previous years. On paper, the experience should have been the same—same location, same facilities, same promise of relaxation. But the reality? It wasn’t quite the peaceful escape I remembered.

The spa was packed. Couples were sharing single loungers, people were wandering around in robes looking for a place to sit, and conversations filled the air in spaces that once felt tranquil. The experience was still enjoyable, but it left me thinking about value, pricing, and positioning—and how those factors shape not just what we pay, but what we perceive we’re getting in return.

What Are Your Customers Really Buying?

The spa experience got me thinking about what customers actually buy—a concept famously discussed by Harvard professor Theodore Levitt, who once said:

"People don’t want to buy a drill. They want a hole in the wall."

In other words, people don’t buy products or services—they buy outcomes, feelings, and identity shifts.

Here are a few classic examples:

?? People don’t buy drills—they buy the ability to hang their picture perfectly. ?? People don’t buy coaching—they buy confidence, clarity, and transformation. ?? People don’t buy luxury cars—they buy status, comfort, and an identity upgrade. ?? People don’t buy spa treatments—they buy peace, exclusivity, and an escape from daily life.

Which brings me back to my spa experience.

What was different this time? The price had changed—but more importantly, so had the positioning and perceived exclusivity. In previous years, paying a higher price meant a quieter, more private atmosphere. Fewer people, less noise, more of what we were really paying for—serenity.

This time, the experience felt more like a busy hotel pool than a luxury retreat. Was it still relaxing? Sure. But the perceived value had changed.

Does Pricing Affect Perception? Let’s Look at the Research

There’s a reason luxury brands rarely offer deep discounts. Price influences perception. In fact, research in behavioural psychology shows that:

?? Higher prices create a perception of higher value—even when the product is the same. Studies have shown that people rate wine as tasting better when told it’s more expensive—even when it’s the same bottle.

?? Pricing impacts customer expectations. A premium price sets the expectation of exclusivity, quality, and personalised service. When a business lowers prices significantly (as Champneys did with the January sale), it changes the customer base, experience, and expectations.

?? People value what they invest in. If you’ve ever given away free advice only for it to be ignored, you’ve experienced this first-hand. A higher price often leads to greater commitment and appreciation.

This is why positioning matters just as much as pricing.

The Trade-Offs of Discounting: Should You Do It?

I’m not saying Champneys was wrong to run a January promotion—far from it. January is a notoriously slow time for hospitality businesses, and filling those spa beds probably made financial sense. But it also shifted the experience for customers who were used to a higher-end, more exclusive offering.

This raises an important question for photographers and small business owners: ?? Are your discounts attracting more business—or changing the way people perceive your brand?

Discounts aren’t inherently bad. They can be strategic. But they should be used with intention: ? To introduce new customers to your brand—without compromising your premium offering. ? To fill low-demand periods without affecting your core pricing structure. ? To reward loyal customers rather than devalue your services to bargain shoppers.

Final Thoughts: The Power of Perceived Value

This experience reminded me that pricing isn’t just about numbers—it’s about positioning, experience, and perception. Lowering prices can bring in more customers, but it can also change who those customers are, what they expect, and how they experience your brand.

If you’re a photographer, coach, or creative business owner, ask yourself: ?? Are you charging what your work is truly worth, or are you undervaluing yourself? ?? Are you positioning your brand in a way that attracts the right clients? ?? And if you’re using discounts, are they strategic, or are they slowly eroding your value?

Because at the end of the day, your customers aren’t just buying what you sell—they’re buying how it makes them feel.

What do you think? Have you ever experienced a service where the pricing changed your perception of value? I’d love to hear your thoughts! ??