Are you selling your value or are you selling a discount?
Are you buying value or are you buying price?
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Value vs. Price is a simple but sometimes forgotten principle concept in sales, marketing, and buying. Whether we are talking about the stock market, grocery shopping, or hiring a contractor, there is a very big difference between value and price.
Let's look at the definitions.
Price: Price is what you pay for something, or what the market thinks something is worth.
Value: Value is what you think something is worth.
Let's look at an example.
For this example, we are going to use a product to illustrate the difference between price and value. Let's use a toothbrush... because everyone needs one!
We're actually going to need two toothbrushes. Toothbrush A and Super Toothbrush A+; protector of all teeth and demolisher of all plaque.
Target and Walmart both sell toothbrush A. Target's price is $10.99 and Walmart's price is $8.99. Obviously, Walmart wins on price because in this circumstance we are comparing toothbrush A -> toothbrush A.
While Target and Walmart are both selling toothbrush A, Costco sells Super Toothbrush A+ for $34.99. Some might say that's too expensive for a toothbrush, but others might justify the cost difference based on the value of toothbrush A+ being a better product.
As a business owner, I was never afraid of being the most expensive product or service in town within reason, as long as I could deliver the value that I was asking someone to pay for. If you are the best, then charge what you are worth. And, if you claim that you are the greatest value then be prepared to prove it and deliver.
Thank you very much for reading or listening to this episode. I look forward to sharing with you more of my knowledge and feeling on the topics of business, marketing and sales. Stay tuned for more content to come soon.
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