Designing Strategies: The Blog
Define Your Value
When you were getting ready to launch your business, hopefully you never had the conversation, ‘live’ or just in your head where you declared: “I want to have the cheapest product on the market.” or “I want my services to be the least expensive.” Surely you never intended to be known as offering the least expensive product or service available. Unless you are Walmart, K-Mart or another business based on a business model of deep discounts, think long and hard about your pricing and the value you bring to customers.
Just like price, value is something not enough business owners feel comfortable talking about. One of the hardest things to do is bring up that money topic. Will our bid come in too high? Will it be too low? Are we leaving money on the table? Can we charge as much as our competitors?
Guess what? It’s not all about money. There has to be value provided for any money exchanged between customers and businesses. If there is value, customers will gladly pay for it. How to you approach that touchy subject of value? It’s actually not that difficult. First of all, just ask your customers what value means to them. What?! Ask my customers? Wild and crazy concept, isn’t it? Not really.
You more than likely have a variety of products or services to offer. If you see some of them as more valuable than the client does and expend your efforts in that direction, they are not going to be satisfied in the end. Focus on what the client sees as having value from the start, reiterate it throughout your relationship and again at the end. The result: you will have less difficulty setting and getting higher compensation for the value you provide for them.
What about you? How do you determine what your value is and how much it is worth? Please share your thoughts in the Comments section below.
DandyID
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