Why is Selling Value Over Price Important?
Have you ever wondered why stores sell the same item but of different price? Or different products that have the same purpose (i.e. whitening soaps, shampoo, face creams) but also have a big difference in how much they are sold? And even if you look into the ingredients, it seems like the difference is unnoticeable.
I have always thought about just buying items that are way cheaper than other products so I can save more but, boy, I was wrong.
One time, I bought a face cream that has anti-aging and rejuvenating effects and of course, cheaper than those with known brands with higher prices. Excited to see the effects, I tried it out immediately when I got home. And just minutes after I applied, I felt itching and a burning sensation all over my face! So I immediately and vigorously washed my face and took an antihistamine to get rid of itching.
Lesson learned: Buying items at low cost does not guarantee that you could save more. Sometimes it could give you itching (literally!) and could cause you more trouble instead of reaping its benefits. The same way, buying more expensive items does not also give you more. Sometimes, because they are well-known brands, you’re just paying for their brand name instead of the quality and effectiveness of the product itself.
As a customer, what’s important is looking for products that offer quality at an affordable and reasonable price rather than looking for products based on their price. Because sometimes, an expensive product does not guarantee high quality and at the same time, not all cheaper products are of low quality. Sometimes you really have to check both quality and price before you decide to buy a product.
Why am I telling you this?
Because when it comes to selling your products and services, the value is more important than the price.
If you’re new to your business or you’re a starting entrepreneur, the first thing that comes to your mind is how you would be able to make a profit out of your products and services. Sometimes, when you think about the value of the brand you are selling, you equate your brand with a higher price(effort, labour, investment, etc.). And sometimes you keep on wondering why potential customers don’t even notice your brand given that it has a high quality. You keep on comparing your products and services to your competitors that have more or less the same quality but its price is way cheaper than yours. But that does not mean that the cheaper your product, the better your product especially if you are considering all the limited resources you used in making your brand.
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“The more you focus on the value of your product or service, the less important the price become.” – Brian Tracy
Value Selling is a sales marketing technique that leverages your customers’ anticipation in savouring and enjoying the benefits they can get when they buy your products or avail of your services.
And the value of what you sell is the difference between the price you charge and the benefits that your customers perceive when they buy your products and services. So when your customers think that they will get a lot of benefits for the price they pay, then their perception of your brands’ value is high. And that’s what you want to have.
You want your customers to anticipate your products and services because they will reap a lot of benefits from them. You have to build that value instead of focusing mainly on the price and profit you would gain. I’m not saying that you should sell your products and services at a meagre price so that a lot of customers will purchase your product. You want them to feel that your products and services are worth every penny they would spend.