Have you ever wondered why stores sell the same item but at a different price? Or other 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 to save more but, boy, I was wrong.
One time, I bought a face cream that has anti-aging and rejuvenating effects and, of course, is cheaper than those with known brands with higher prices. Excited to see the products, I tried them 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 a 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.
In 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 are a starting entrepreneur, the first thing that comes to your mind is how you would profit from 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.).
You wonder why potential customers don’t even notice your brand, given that it has a high quality. You keep comparing your products and services to your competitors with more or less the same quality, but its price is way lower 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.
Let’s make things clear and see what’s the real interpretation of this matter.
Selling Value Over Price
“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 your customers perceive when buying your products and services. So when your customers think that they will get a lot of benefits for the price they pay, 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 many 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 low 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.
What is Value Selling?
Before defining value selling, let’s first get familiar with value in business. Value refers to the difference between what your charge and the benefits customers can gain. In this case, if the product or service has lots of benefits, then its value is very high.
So, what about value selling? Value Selling refers to a sales technique that supports your consumer’s anticipation of getting the benefits of your product or service. Through this approach, you are weighing your value depending on the advantages you give to your audience.
As you keep focusing on improving your values, you will surely degrade your mind to the price. Why? It is because the price automatically increases as the value levels up.
Value Perception and Value Proposition
After determining your value, you can now learn about the difference between value perception and value proposition. Both of these two give a huge impact on your selling value before offering it to your audience.
Value perception caters to sets the tone of the customer’s desire. On the other hand, value proposition sets the tone for the company and its employees to serve that customers.
These two warns you how it is important to check your brand’s value perception in order to align it properly. You should let your product or service hit the value perception using your value proposition. If this fails, people might not truly appreciate your offer and tend to look at it as overpriced.
However, if you made sure that your value perception is supported by your value proposition, it would make both parties happy. Why? It means that you have provided the best solution to your consumers, making them realise how valuable your product or service is. It is simply known as your offer is “worth it.”
To help you understand the value over price, let’s differentiate the two. Discover where you should focus more and why.
Value vs Price
The price is responsible for showcasing what people would spend on the product or service. Whereas the value is what the consumers perceive on the benefits they will gain from you.
These two work together as it drives people to either buying your offer or not. For example, the value of your product is low, then people will feel unobligated to buy from you either for a low or high price. On the other hand, if consumers recognise your values clearly and they see how they will receive too much from your, then they will truly buy.
Even though your product reaches the highest price, as long as it is full of value for a certain product or service, people will move heaven and earth to buy it. Without further ado, they would undoubtedly buy from you and support you all the way.
However, how can reach that particular hype for your business value? It takes a lot of research and patience to level up your value, without worrying about any price selling you would offer in the market.
Let’s find out how.
How to Sell Value over Price?
An entrepreneur, Brian Tracy, once revealed the key ways to sell value over price. He even dictated the possible tracks you should take ensuring your value to be better than others. As a result of this, people will not turn their backs on you.
Step 1: Ponder and analyse who will buy your product.
In this first phase, you may try picturing in your mind the people or individuals who might buy your product or service. You may also determine who are the target audience that would buy from your immediately.
After answering these questions, you may now proceed with building your consumer’s avatar. It includes their personal details, such as gender, age, educational background, level of education, marital status, job, financial capabilities, and so on. You can also check about their likes, interests, and hobbies.
As you check this information, you can now align your products and services to this particular group of people. Building your avatar will let your focus on shorter groups and hit them directly, rather than looking at consumers among a wide range of audience.
Step 2: Identify your customer’s problem clearly.
After finalizing your consumer’s avatar, you should now proceed to deeper details about them.
The second step requires you to determine your target audience’s problem. It includes the major problems, and minor problems involving the primary issue. Afterwards, you can now ask yourself: How can you help them or solve it using my products and services?
Remember, if no problem exists, they will not value the product you are offering. So, you still need to clearly identify the problems that exist around you and check out the best solution that would eager your clients to pursue you above anything else.
If you find out the answer to this problem, then the value of what you offer just levelled up! However, it does not only stop there.
Step 3: Make a list of all your product benefits
Moving forward to the last but most important part of the process is to list down ALL the benefits. Answer the question: How much your product or service can help them?
As you provided more solutions or benefits, the higher the chance they would not deny your product or service. So, if you set your offers at any price you want, people would still believe in you and buy them instantly.
That is how essential to setting the benefits and advantages of your products or services. These details would help your offer be more VALUABLE! As a result, consumers would never think twice about purchasing from you.
So, the key concept you need to highlight is the value, instead of checking in and out about the price you prefer. Once you already ensure the benefits and people understood it, they will surely give a go to you even for the highest price possible!
Here are some of the popular names in the business world that sells a lot but keeps the customers patronizing them. Why? These companies maintain their values and continuously provides a solution to their customers’ needs.
Examples of Companies that Sell Value Over Price
Apple. The Apple brand offers a pool of tech products in the market. It includes smartphones, laptops, tablets, personal computer systems, and tech accessories like smartwatches, pens, wireless earphones, etc. Among all these Apple products, one thing is for sure is that they all have expensive prices.
But why do people still keep on buying Apple products, even there are more gadgets more offerable? The secret is how Apple maintain their value, inputting several unique qualities that encourages their loyal customers to support them all the time.
Some of the reasons why people value Apple a lot is due to its extraordinary operating systems like iOS and macOS. It also includes the existing Apply ecosystem from where they want to pair their iPhones to their wireless devices. Other than that, their usual sleeking and expensive-looking products also hit the upper classes of individuals.
You see, Apple stands out among other brands due to its impeccable qualities and status. So, even their products are more expensive than others, people still rely on their new offers.
Starbucks. Another powerful brand that offers value over price is Starbucks. People see them as the finest and most urban appealing coffee shop. They provide warmth, premium, and high-quality products and shop interiors. So, it makes their value higher than others.
Comparing to other brands, Starbucks made their brand name sounds expensive, resulting in a better value. So, even Starbucks release a new cup of coffee at a very high price, people would still try it! Why? It is because these individuals feel the warmth, premium, high-quality standards that they all wish for.
Louis Vuitton. The French clothing line of Louis Vuitton gives luxury and style to the people. With the elegance, they highlight on their products, and intricate aesthetic design, customers love them more! Even the colour scheme they have presents luxury and iconic feels.
So, Louis Vuitton reaches the desire and demand of its customers. As a result, at any price they offer, people would totally give in to their value!
Like these three powerful brand names, start ensuring your value now. List down all the benefits your company has and point them out to your people. Through this, people would also see the importance of supporting you and they will become loyal to you.
Learn more about business entrepreneurship and outsourcing. Seek more help about these details to obtain higher value resulting in higher profits. Receive more business, marketing, and financing tips through Kaya Services.