When To Charge More For Value (Dallas, TX)

June 6, 2008 · Filed Under Random Thoughts, Sales Training 

Chief Idea Officer of MarketingMeasureThe inherent value of something is assigned by each of us and is based on how badly we want or need it. For example, if I told you I’d give you $25 dollars if you’ll make a pot of coffee then the value of that pot of java is…$25 dollars. Up the offer to a million bucks and now the pot o’ joe has a value of $1 million dollars. Same pot, same coffee, different value.

Gold is only worth something if someone else wants it. If you owned all the gold on the planet but you were the last man or woman alive then the gold would be absolutely worthless.

The higher the perceived value of a thing the more a buyer is willing to pay. Remember, the buyer assigns the value. If a service you provide enables a $100 sale for your client then the value of your service is $100 - the cost of your service. Your service is only worth what it will help someone else achieve or obtain.

The same service provided to another client who utilizes that service to close a $10,000 deal now has a higher assigned value. Remember, the client assigns the value to your service based on what it will help him achieve. So you get paid more for your service by the $10,000 client not because anything about your service changed or is different than that provided to the $100 client, but because the larger client assigns more value, more importance to your service and is willing to pay more for it.

Your job then, is to help your prospects, clients and customers realize what your products and services can do for them, making sure to translate that benefit into real dollars. Quantify the benefit, make sure your audience understands the cost/benefit relationship and help them assign that higher value to your offering. Help them rationalize the purchase and realize bigger margins on your sales.

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Phillip Crum is the Chief Idea Officer of MarketingMeasure and is committed to the idea of helping small business owners do a better job of finding their next customer or client. He and his two sons also own a Sir Speedy Printing franchise and employ those additional capabilities in the overall marketing services menu of offerings. Phillip can be reached at 214-213-7445, or pcrum@MarketingMeasure.com

Copyright © 2006-2008 Phillip Crum | Email This Post Email This Post | JobSearchDocs

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