When you think of the value of something, do you immediately imagine a price tag? If they are not the same, do you know how they are related to each other? In this article I explain how.I don’t know if you remember that famous commercial from Master card – it says I’m not advertising it 😉 – where they specified prices for different elements of a family reunion: food,gifts and so on. And at the end it said: “four generations in the same photograph… it is priceless”.
In Spanish, if we want to ask the price of a thing we say “how much is it worth?”. And precisely because of this we tend to confuse price with value .They are not the same.That confusion is capable of not only stalling, but ending any business. It may sound extreme, but it is. If when you want to “raise the value of your product or service” you immediately think of raising prices without having a proof that your potential client understands, they will discard you.
Sometimes prices can be lowered according to seasons, or other factors, but it must always be with strategy. Because by offering discounts left and right, your client will think: “in the end it wasn’t worth that much then.” And in the end he did not understand the value he would get with your product or service.
That is why it is so vital to know not only what what you offer is worth, but how to communicate it.
Here are 3 differences between the two:
Price is objective, value is subjective . A luxury car can cost $ 200,000 here and in any other country, but the value that each buyer gets based on their needs, priorities and objectives can vary. Some would obtain status, others a boost – quite expensive, by the way – in their self-esteem, others access to certain circles, etc. How much is what you offer worth for your client? Is your problem important enough to invest in a solution?
Price is a feature, value is a promise . A good part of the complaints when making a return in a store is because the brand / company did not fulfill its part of the deal. You pay for a garment, and you expect it to be in good condition and last, right? But if when you get home you see that it was broken, it was missing a button, etc. the frustration is proportional to the amount you paid. So don’t just focus on how much you will charge, but on the promise you make to your customer.
Price is how much you have to give to get something, value is what you hope to get . Nobody invests money just to buy. Not even compulsive shoppers, because they do it because they get a reward on a psychological level. In the case of your ideal client, what does that person or company expect from what you offer? The previous section focuses on your promise, and this one refers to the expectations of your client. And if those expectations are combined with what they will have to give to obtain it.
If you want to increase the profitability of your business, you must stop competing only on price and learn how to communicate the value of what you offer.
I hope these three keys have helped you gain greater clarity regarding the difference between the two, and you can make decisions that take your business to the next level.
As always, I invite you to participate with your comments .
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