Should I cut prices? Perhaps offer discount coupons? Charge less but give less value? Stick to my guns and stay at the same price point, focusing more on communicating the value I offer? Or, charge even more and find ways to increase an already-exceptional buying experience?
Indeed, an ongoing theme in this blog and in many others is the issue of Price vs. Value.
Many of us do our best to persuade our readers that rather than submit to price-cutting pressure from prospects and a general price-lowering trend as a result of the economic climate of the past few years, that you instead increase the value (both real and understood) of your offering.
In other words, sell on value; not on price.
This is one reason why referrals, introductions and word-of-mouth are so important. Because you meet new prospects as a result of borrowed influence; that of someone they know, like and trust, you are viewed in a different, more positive and — dare I say — value-based light.
One helpful saying I either heard or read many years ago rings very true to me, and that is, “A person will exchange their money for that which they feel is of equal or greater value than the money they are exchanging it for.” Naturally, the more value they perceive compared to the money they are paying, the more likely they are to make that exchange.
There are several other sayings I love regarding the trumping of value over price. Famed consultant Alan Weiss, author of Million-Dollar Consulting says, “Money is never a resource issue…it is always a priority issue.”
Two more of my favorite sayings in this regards are from John Ruskin (1819-1900). You can read them here and print them out if you’d like.
And, with all that said, there are exceptions. Sometimes price is indeed the true issue, and the sale is unlikely to happen regardless of the value compared to the price. However, in these instances, it’s not an objection; it’s something else.
Exactly what is it? We’ll look at that next.