Most customers don’t buy based on price; they buy based on value. A key step for maximising your profits is communicating the full value of your products and services.
Sometimes we are so close to our products or services that we don’t see their full value and communicate it effectively to our potential customers.
Here’s a taster of some of the comparison techniques you can incorporate to make your product or service look more valuable and attractive to potential clients:
Cost of not buying it – the current pain
Opportunity cost of not buying it – the result you won’t get
Cost of comparable solutions
Cost of everyday solutions
Cost of doing it yourself – the value of your time
Compare against your highest value product – Top Down Pricing
Contrast with future price – a pre-launch offer
Emotional cost – how good it will feel to have your product/service
Seeing the value
When communicating value to your customers, it’s important to see your products or services from your customer’s perspective and focus on the benefits for them. Think of this beachball as a representation of your products of services.
If you held it up in front of a customer, you would both have different perspectives. It’s important to switch your perspective round to your customers’ perspective when communicating value.
It’s too easy to fall into the trap of listing the features of your products and services, rather than focusing on their benefits.
For example, if you supply air conditioning, your customers probably aren’t interested in the detailed technical specifications of your equipment. They want to purchase the benefit – a comfortable environment for their team to work in productively ensuring their business is more profitable.
Focus on communicating how your products and services deliver the full value that your customers are looking for to enable you to price for profit.
Give us a call if you want to learn more about pricing to be profitable, and start communicating value.