Price Vs Value

When we focus on price and features, so do our customers. However, buying decisions are rarely made on price, they are made according to value. So it makes sense to redirect the conversation to the value we are offering instead of the price we are charging.

So, what’s the difference?

Value is what the product or service is worth to your customers. Your customers will decide the value based on how it impacts them and their life.

Price is simply how much you are expected to pay for something. As a business, you decide the price.

We desire value, we pay price

If we focus on value instead of price, the buyer can be allowed to form a desire for our business and product, rather than thinking of it as a purely functional, boring purchase. But, what is your value? Simply put, it’s the bit about your business, product or service that makes your customers lives better. Don’t confuse value with your USP, you set your USP based on the features you offer. Value is decided by your customers.

Its value that makes people choose more expensive, more desirable items. If we all just wanted to get to work on time, we’d all drive the same car, or take the bus. But, we don’t, we all have different values, and different challenges, so there is a variety of options to suit us all.

What does value mean to the customer?

If we can identify what value means to our customer, we’ll be able to show them the benefits we offer in a way they will appreciate. For example, don’t try sell an item to a meat eater by telling them it’s vegan. Your product can be vegan, but that isn’t going to appeal to the values of that particular customer, it’ll not be considered a benefit by them, and therefore it isn’t worth mentioning. Instead ask, what does the product or service offer that my customer does want or need?

When we think of value, we must consider it from the customers point of view. We must also think outside of the product or service and consider the value our business offers too. For example, if our customers have very little time, they might consider the value of a fast, easy checkout process on our website. This has nothing to do with the product they are purchasing, but it might make the difference between buying from us or our competitor. Conversely, if our customer has all day, they’ll not even notice the checkout process, so no point selling that as a benefit to a pensioner, for example. They might see more benefit in a friendly, chatty, voice at the end of the phone.

If you’re still not sure, consider why a person might pay somewhere between 85p and £1.50 for a can of Heinz beans depending on whether they are in Tesco, a corner shop or Waitrose. It’s all about the value that is offered, and the problem the customer has at the time. If they just need beans, and fast, then the corner shop solves the problem, or maybe they don’t drive, or can’t get parked easily, or can’t carry loads of shopping, or don’t feel like wrangling all the kids on the bus, or something else.

So, let’s try and identify the benefits you offer, as your customers see them.

Check your reviews

Reviews are a great place to start looking. In this review here, the customer mentions “ordering with ease”, “custom items” and “delivery to Broughty Ferry”. These features are all valuable to her, in fact they are so important that she went to the trouble of telling others by leaving a public recommendation.

It’s also worth noting, that when people leave a detailed review, they are often comparing your service to an experience they’ve previously had. For example, here, she mentions ease of ordering. The fact that she mentioned it at all suggests to me that they have had issues ordering elsewhere in the past, probably from the competition.

As well as reviews, you might have received feedback in your inbox, seen comments left in forums, or simply been told how amazing you are face to face.

So, have a look through all your available feedback and make notes on common themes. If this stuff is important to your existing customers, you can bet it’s important to your future customers too, so use it as inspiration for future content and make sure everyone knows how amazing you are.

Ask about how to apply this to your business in your next 1-1!