Value is not something we can see, buy or use; value is something we FEEL.
So how do you make your clients feel like they’ve encountered VALUE when purchasing your products or services? Put simply – listen to what they really need and provide them with exactly that.
Let’s take a closer look…
Value is Subjective
Here’s a scenario: Would you pay $50 for a glass of tap water? Absolutely not. Would you pay $50 for a glass of tap water if you were in the desert and hadn’t had any water for three days? Probably.
Value is not fixed. Value is created when we ask ourselves if a certain product or service will meet our expectations. We are using our perception to predict the fulfilment of our expectations.
The objective reality of how the outcome of our purchasing decision comes much later – once we have already made the purchase and used the product/service. Essentially – when it’s too late.
What Influences ‘Value’
In B2B these influences tend to relate more to the economics, i.e. lower running costs = higher revenue, but this isn’t only about the lowest price. What it means is: who offers the lowest price amongst those who understand the scope of our needs.
In B2C these influences are largely intangible and (let’s face it) irrational. The customer can be easily influenced by emotions, impulses, desires, sensations, urges. This still can happen in B2B as well, after all business is relational and interpersonal, however when consumers are using their own money they allow for greater capricious consumption.
The Price/Volume/Profit Trade-off is when you ask yourself: So if I lower my price and attract more customers, will the increased amount of customers make up for my new lowered price and overall bring me more profits?
The Price Advantage by Walter Baker et al. outlines: a 5% price decrease would require a 18.5% increase in sales just to break even – not to mention the added operating costs on the business’s end. So every 1% drop in price would have to attract 3.7% growth in sales – they predict you can only expect to see a maximum of 1.7-1.8% sales growth per 1% price drop. They say: “Each percentage point of price represents a precious nugget of profit that should be held tight to the chest and not given up without a hard fight”.
Why Value Outlives Price
Trying to win customers based on price is a surefire way to end up exhausted, out-of-pocket and constantly looking for new customers. Instead, competing in terms of value is the key i.e. understanding what your clients want and giving it to them. As well as, ANTICIPATING their needs, their desires and then providing value in the way of great customer service, follow-up, support, good quality service/product and the oh-so-important personal touch.
At Hunt and Hawk we know value. We understand and implement value in every step of our approach. We can help your business and your sales team embody value and understand the needs of your clients. Book a free growth session with a Hunt and Hawk specialist today – now that’s VALUE!