“Value is more expensive than price.” Toba Beta
One of the core principles of marketing is price; it is also one of the most misunderstood elements of creating an awesome business. Price can be determined by many things… cost of goods, overhead, brand positioning, product or service type, strategy, business model, and more.
But what I want to focus on today is value. Value and price are not the same, and I agree a gazillion percent with the above quote. Value is actually more expensive than price. What does that mean?
In my experience, it means the amount of value you bring to your service experience is what ultimately matters, and delivering meaningful and relevant value consistently is not easy.
Do you know what your clients value? Really know? If you don’t, it’s time to find out. If you solely compete and do business on price, be careful, as you become a very vulnerable business, in fact, you will become a commodity. (Defined by Webster’s: a good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors (as brand name) other than price) Ouch!
A haircut, a Pilates class, an ice tea, anyone can get those anywhere, anytime. You have to give me a reason to want your haircut, take your class or purchase your ice tea.
My colorist Lucie Doughty at AT Tramp delivers value far beyond the price. She is kind, attentive, focused 100% on me, and delivers quality consistently. That is what I value. The same with my hair cutter Carlos Ramos, aka Sugar Skulls, in fact, I get my haircut almost weekly, so clearly I love my experience.
My Pilates studio, Whole Body Method is calm, friendly, focused and really cares about my well being. That is what I value.
My Starbucks, and now my Coffee Bean & Tea Leaf next door to the Passion Squared Loft consistently deliver a smile, a happy greeting, and pay attention to what I love, TONS of ice. That is what I value.
What do your clients value and are you delivering it consistently. Those are the questions I want you to focus on this week. When there is true value being delivered consistently, price no longer is the issue.
(shared with LOVE from Nina)
PS: If price really is the issue, and you are in the volume, discount business, that is a strategy too. The key is knowing what business you are in. And always be mindful, some other business is always going to offer a lower price.