Price vs Value

On October 22nd Robert Stephens of Geek Squad spoke at the COSE Small Business Convention. He shared a number of really valuable business lessons as he shared his journey with the small business owners in attendance. There were a couple of things he said that really resonated with me.

One of those was this - 'price is only an issue in the absence of value.'

This is so true! When a prospect talks about price they are really saying they don't see value commensurate with the price they are being charged. 


This reminded me of a sales presentation I gave to an association of answering service business owners a couple of weeks ago. One of the attendees said that if someone calls him to explore his services he asks them if they have used a call center before. If they say they are currently doing it he asks them what they are unhappy with. If they say price he believes he can't help them; that price is one of those areas that is hard to overcome.

My response was this - when someone says they are unhappy with the price they are paying they are really saying that they don't believe they are receiving value for the price they are paying. So, there is something to talk with them about. When they hired that vendor they believed they were going to get a certain level of value for the price they were going to pay. And that they must have believed they'd get a level of value equal to or greater than the price they were going to pay. If they become unhappy with that they believe something has changed. It probably indicates that they believed they were not receiving the level of value they expected.

So, you see, the issue isn't really price. It's the price they pay against the value they are or will receive. If you want to deal with value instead of price be sure to understand what they prospect is looking for, what they need. Then match your product or service to that need. When the prospect sees the value they'll pay the price. 



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