If your customers aren’t receiving the value they expected from the products and services you offer, chances are they will leave. But, how do you know if value expectations are being met?
One of Warren Buffett’s most famous quotes is “Price is what you pay for; Value is what you get.” This is true for most purchases. However, the instant you see the price, your brain is determining whether or not it is less or more expensive than you imagined. People inherently make buying decisions with some expected type of value deliverable that will benefit them or give them some type of advantage for the price that they will pay.
According to Brian Tracy, “The more you focus on the value of your product or service, the less important the price becomes.” Meaning, the more benefit a customer receives from the products and services you provide, the less price is a factor. This is important because it provides you with an opportunity for growth. By uncovering their underlying value expectations and ensuring customers are receiving the value they desire, you can have confidence knowing your customers will be loyal to you for the value that you deliver.
Don’t fall into the trap of confusing the price of your products with the value they provide;
Ask yourself these questions…
What’s the real motivation behind your customer’s purchases?
Why are they buying to begin with and what will the product or service enable them to do or achieve for their business? For example, maybe they’re buying a technology product that will make it easier to sell their services. This makes sense to make it easier for their buyer, right?
And then ask, what is that experience worth?
If this purchase facilitates an easier buying process and more products are being sold as a result, the value lies in additional sales generated. Purchasing a technology product for $10,000 that allowed you to sell an additional $80,000 is a great return on investment. So, the increase in revenue and profit is likely the expected value deliverable beyond purchase price.
If you’ve done a good job communicating the value of your products beyond price, customers may even be willing to pay a premium and will believe it’s a good deal to do so because of the value they receive.
You can ensure you are providing a valuable product or service by tapping into your customer’s true needs and desires and learning how to communicate and build on that value. As a result, you can establish a strong business that makes the kinds of profits you deserve.
Consider these Customer Acceleration tips that will help you make more money from your customers and make them happier in the process!
And if you’d like some help, please reach out at (216-876-1165) I’m happy to help you get started.
