Giving customers value for their money is key to your business’ success. This doesn’t necessary mean a low price. Value means getting the most for your money. Webster’s Dictionary defines value as, “a fair return or equivalent in money, goods, or services for something exchanged”. Value changes from individual to individual and from time to time. It’s all a matter of perception. What one customer perceives as a value may not be perceived in the same manner from another customer. Whether you are selling a luxury item or a staple product, you will win sales if you offer customers more for their money than your competitors do.
Some firms add value through innovation. Others add value to their existing products. Some businesses lower their cost to the consumer. When customers feel that what you have to offer is worth more to them than the money in their wallet, they’ll buy.
Businesses should frequently evaluate their value proposition. Since markets are quite dynamic, a firm’s value proposition should change with changing market needs. Many organizations offer excellent value, but they fail to communicate it to their customers. Be sure to get credit for what you’re doing. Don’t hide the value and quality you build into your service or product. Clearly state your customer benefit and the reasons you are able to deliver on it. After all, customers by benefits, not products.
Make sure your product or service is easier to use, more effective, or more advanced than the competition. Look beyond the purchase price of your offerings to the lifetime costs to consumers. Maybe the initial cost is higher, but a longer warranty, or free installation and delivery may add value.
Finally, look at your price, offering, and profit margin to see if your value is out of line. Customers look at what they are paying relative to what they are receiving. Especially in today’s economy, value is playing an increasingly important role in consumers’ purchasing decisions.