Knowing the difference between price and value is what's missing for your sales to take off
Posted: Wed Dec 04, 2024 3:12 am
It may seem obvious, but knowing the difference between price and value can build a bridge that takes your profit margin to another level.
Contrary to what many people think, the two terms do not mean the same thing, they have very different meanings but when understood and applied at the time of pricing, they make all the difference .
You know that coffee with milk from the neighborhood bakery that costs around R$3.00 a cup? Well, you can find the same coffee with milk at Starbucks , for example, and pay around R$10.00.
But why the difference? That's where price and value come in!
Are you curious? This article will help you understand the subject investors email lists better and, as a bonus, it will also help you when pricing your products and services.
Keep reading!
Price and value, what's the difference?
First of all, it is important to understand what each of them is, after all, only then will it be possible to identify how to apply them to your business.
Price is the financial value attributed to a product or service so that it can be sold. It is common that during the sales process, the potential customer asks what the price of what is being offered is and that is where the question comes in:
The price set ends up varying and taking some characteristics into consideration, such as: the quality of the product or service, the level of authority of the brand in the market, the purchasing power of the target audience and the average price charged for the same item. All this analysis is important so that you can set an appropriate price for whoever you want.
Value, unlike price, is based on the perception that your target audience has of your product or service. Here, you can see that this vision is not homogeneous, that is, each person has their own and it can vary based on what each person takes into consideration when finalizing a purchase.
In other words, what ends up generating value for a product or service are the benefits that are added to it.
Find out why benefits are what generate value
When thinking about your product or service, have you ever thought about how to make it attractive to your customers? This is extremely important!
But at the same time, it is also something that needs attention. Many people make the mistake of only advertising the product’s features in their advertisements: “buy these Wi-Fi headphones now”, instead of saying: “buy these Wi-Fi headphones right now, the case allows you to exercise without having to hold your device”.
Did you feel the difference? In the first sentence, you simply communicate the main feature of the headset. In the second sentence, in addition to communicating the feature, you also explain the benefits that this product can bring to the customer.
It’s very common for sellers to focus on features, which is also important, of course! But identifying and displaying the benefit can help you differentiate the price and value of your product.
In other words, the more perceived benefits, the more likely you are to successfully offer higher prices and lower discounts.
Price is what you pay, value is what you get! (Warren Buffett)
Therefore, every good salesperson needs to know how to differentiate features from benefits, since these are what generate value and the more added value, the greater the profit for your company.
Discover how value can increase your sales
When we enter into a negotiation, it is necessary to have price and value at the tip of our tongue. This means that the sales professional must be prepared to offer the product or service, aligning it with the client and still show the reward/results that they bring.
This is important because the customer can understand that the value is greater than the price paid. After all, they don't buy because of the service or the beauty of the product you sell. But rather, because of the added value.
Thinking about helping you on this journey, I have separated some tips that can help you a lot:
Always keep in mind that listening is essential
Use techniques to help you discover what your customer's pain points are and how to solve them
Show the client the benefits and make them identify the gains in their life.
Is it possible to add value without changing the price?
This is a very common question and also a concern for many companies. Know that it is possible to add value to your product and still not have to change the price.
Want to know how to do this? I have put together 4 tips for you to apply to your business and add value to what you offer:
1. Invest in branding
This is a crucial point to ensure that your brand has a strong presence in the market, which ends up attracting customers, regardless of the price set for the products and services.
This is especially clear in the following phrases: “Energy that tastes good!” or even “Everyone uses it”. If at any time you have had contact with the product or even the brand’s advertising, you know what I’m talking about.
Contrary to what many people think, the two terms do not mean the same thing, they have very different meanings but when understood and applied at the time of pricing, they make all the difference .
You know that coffee with milk from the neighborhood bakery that costs around R$3.00 a cup? Well, you can find the same coffee with milk at Starbucks , for example, and pay around R$10.00.
But why the difference? That's where price and value come in!
Are you curious? This article will help you understand the subject investors email lists better and, as a bonus, it will also help you when pricing your products and services.
Keep reading!
Price and value, what's the difference?
First of all, it is important to understand what each of them is, after all, only then will it be possible to identify how to apply them to your business.
Price is the financial value attributed to a product or service so that it can be sold. It is common that during the sales process, the potential customer asks what the price of what is being offered is and that is where the question comes in:
The price set ends up varying and taking some characteristics into consideration, such as: the quality of the product or service, the level of authority of the brand in the market, the purchasing power of the target audience and the average price charged for the same item. All this analysis is important so that you can set an appropriate price for whoever you want.
Value, unlike price, is based on the perception that your target audience has of your product or service. Here, you can see that this vision is not homogeneous, that is, each person has their own and it can vary based on what each person takes into consideration when finalizing a purchase.
In other words, what ends up generating value for a product or service are the benefits that are added to it.
Find out why benefits are what generate value
When thinking about your product or service, have you ever thought about how to make it attractive to your customers? This is extremely important!
But at the same time, it is also something that needs attention. Many people make the mistake of only advertising the product’s features in their advertisements: “buy these Wi-Fi headphones now”, instead of saying: “buy these Wi-Fi headphones right now, the case allows you to exercise without having to hold your device”.
Did you feel the difference? In the first sentence, you simply communicate the main feature of the headset. In the second sentence, in addition to communicating the feature, you also explain the benefits that this product can bring to the customer.
It’s very common for sellers to focus on features, which is also important, of course! But identifying and displaying the benefit can help you differentiate the price and value of your product.
In other words, the more perceived benefits, the more likely you are to successfully offer higher prices and lower discounts.
Price is what you pay, value is what you get! (Warren Buffett)
Therefore, every good salesperson needs to know how to differentiate features from benefits, since these are what generate value and the more added value, the greater the profit for your company.
Discover how value can increase your sales
When we enter into a negotiation, it is necessary to have price and value at the tip of our tongue. This means that the sales professional must be prepared to offer the product or service, aligning it with the client and still show the reward/results that they bring.
This is important because the customer can understand that the value is greater than the price paid. After all, they don't buy because of the service or the beauty of the product you sell. But rather, because of the added value.
Thinking about helping you on this journey, I have separated some tips that can help you a lot:
Always keep in mind that listening is essential
Use techniques to help you discover what your customer's pain points are and how to solve them
Show the client the benefits and make them identify the gains in their life.
Is it possible to add value without changing the price?
This is a very common question and also a concern for many companies. Know that it is possible to add value to your product and still not have to change the price.
Want to know how to do this? I have put together 4 tips for you to apply to your business and add value to what you offer:
1. Invest in branding
This is a crucial point to ensure that your brand has a strong presence in the market, which ends up attracting customers, regardless of the price set for the products and services.
This is especially clear in the following phrases: “Energy that tastes good!” or even “Everyone uses it”. If at any time you have had contact with the product or even the brand’s advertising, you know what I’m talking about.