Price vs Value - Do You Know The Difference?

More and more I’m realizing the value of having a clear cut plan of attack in place because if I didn’t, I’d wake up and find out I’m still trying to figure out what needs to get done 2 days ago.

Anyway, that’s not what I wanted to talk about today. I want to touch briefly on the differences between Price and Value. Knowing what each of these are and how they’re different can make a HUGE difference in your business.

PRICE is what someone pays for something. Plain and simple. No fancy explanations needed to help you understand this one.

Value, on the other hand, may take a bit more explaining. You see, VALUE is a combination of both the price someone pays AND the total benefits derived from that ‘something’.

If the PRICE is way to high for the VALUE received, that business won’t be in business very long. I’m sure you get the picture.

So, how can you turn this knowledge to your advantage?

In many cases, especially the green industry, businesses try to compete on price alone. They think the only thing the customer’s worried about is the amount of the invoice you’re going to send. As a result, they’re willing to undercut their prices simply to try and land new customers.

Well, I’m here to tell you that that’s a HORRIBLE way to run your business and it’s not always necessary. If you do happen to have customers that are only worried about price, then I suggest you start looking for more customers that aren’t.

You see, instead of competing just on PRICE, you should position yourself to compete on VALUE. That way, you can provide basically the same services, but not have to worry yourself to sleep at night thinking your customer will vanish the next time some low ball scrub comes knocking on their door.

Aside from looking for customers that are more interested in VALUE than PRICE, you should constantly be educating your customers on why you do provide the best VALUE.

Go the ‘extra mile’ for them and demonstrate a willingness to do things other LCO’s aren’t willing to do and you’ll soon find you have a business filled with loyal, VALUE conscious customers instead of wishy-washy, price checkers.

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