Whether you are selling services as a provider or buying services as a consumer, the most important thought in the decision making process comes down to one thing…”value.”
Although on opposites of the room in almost all situations, both providers and consumers share a commonality in the understanding of value. For entrepreneurs and decision makers providing services and products, it is of tremendous worth to understand it’s importance to provide business benefit to their audience regardless of monetary resources.
What Is “Value”?
According to my lovely friend Merriam-Webster, “value” is defined as “relative worth, utility, or importance.”
The key word in this full definition is “relative.” What is it worth to YOU?
A great example of this concept can be diving into the world of collectibles. To many, the picture of a young athletic man in early twenties grasping an orange ball printed on card stock is just that – a photo on a measly piece of thick paper. But to some, this Michael Jordan rookie basketball card is worth thousands of dollars. And to a few, it’s worth their life.
In it’s simplest form, its a decorated sheet of paper that has a physical value of about $0.00005. But that relative value to the right individual has a limitless price tag.
Who is the right individual?
Referring to our sports themed example – is the right individual a sports fanatic? Or a collector of rare items? Or simply just someone who idolizes Michael Jordan?
One might think that the obvious answer is “all the above” when in reality it isn’t. Yes, a sports fanatic who loves rare Michael Jordan paraphernalia will most likely be one who would pay any amount to own this basketball collectible card.
The real answer is simply – the one who values it the most, simply because it is that individual who will most certainly, not most likely, purchase this item.
Ahhhh, the holy grail of all entrepreneurs – the right individuals who have a perfect need for their services. The right individuals are those that are going to fall within one or both of these two buckets:
- Those who have a need within your niche
- Those who have an immediate need
Best case scenario would definitely be the combination of both, as the relative value indicated is incredibly high. But in the case of those who don’t have an immediate need, those clients would be the right individuals as the value they are seeking is aligned with timing, which we all know is priority we all despise.
Understanding “value” to find the right individual
Finding the right individual or audience will almost guarantee you sales regardless of cost. Understanding “value” is imperative for success in business. In fact, the right mindset is to “sell value” in your offerings. Your services and product might be incredible, beautiful, and awesome in all facets but if it lacks value to your audience, then all you will be left with is an incredible, beautiful and awesome product for yourself.
To understand “value”, let’s compare it with the thought of “pricing,” with that being a perceived value that is tangible. For example, what option would be more appealing to your client who is looking for a web presence for their brand:
- A custom engineered application at $20,000 – includes full management analytics functionality
- A basic template driven website at $6,000
At first glance, the second option is the cheaper of the two and will be able to provide a web presence for your client. But, does having the ability for content management and data analytics bring value for them?
In other words, will that help THEIR business bring money for them? If so, will an additional $14,000 bring enough revenue for its justification?
As entrepreneurs looking to sell your offerings at the most monetary value, it’s important for you to show your clients that the answer to those questions is a resounding “YES.” Having their focus on “value” and not on “pricing” will not only bring you the sales you desire and need but ultimately help your clients, which will build trust and a stronger relationship.
In other terms, selling “value” equates to “investment”. However this isn’t the stock market, so you will also need to show that your clients’ investment WILL bring a positive return in a meaningful timeframe.