TSB14 – What is Value and How to Create It

On this Podcast Episode Christmas message and goal setting series announcement Early Bird announcement for products in January 2015 Steps to identify how to create value from your products Steps to create value and start a differentiation point that is not price Let's get started... Having a young daughter made me realize I need to explain things a lot better and in a way that makes sense to everybody. "Value" is something I often mention to my students, but it hit me the other day that not many people can really clearly define the word... Including me. With that in mind, I decided to go on a quest to explain this word as best as I could. Here is the result...   When it comes to your business, the thing that will really make the difference is the value you offer #tsb Share on X   I opened a dictionary and searched for "Value". According to the Oxford Dictionary, "Value" is the “regard that something is held to deserve”. It is also known as the “importance, worth, or usefulness of something”. Value could also be the “material or monetary worth of something.” Or, it could also be the “worth of something compared to the price paid or asked for it.” When you tried to look at the Merriam-Webster Dictionary, the meaning of the word value is almost the same. Since we are talking about business, we need to keep in mind that the value  you offer customers is what makes them decide to buy your products or services. So...  How Value Perceived by Clients? You may not know it, but the success of a particular product largely depends on how the customers look at the value of the product. Customers buy when the product is capable of meeting their needs. Not all customers can be swayed by advertisements. Good advertisements can intensify how customers look at a product, but it is not the sole factor. They accept the messages sent by the advertisements and look if what the advertisement says is related to the product that they are looking for. Clients or customers also know how to determine if the benefits outweigh the costs. What can you do to determine your value? It is important to know what the customers want and do not want. This is companies conduct surveys: to assess the value of their product. Knowing what the customers want versus don't want makes it easier to create powerful messages through advertising to catch their attention. Make a clear point of difference that is not low price. This strategy makes the customers think that they can afford more of this product compared to another product that offers the same thing but with a more costly price. Though, this makes the whole process more difficult as the slightest difference could take you out of the market. Try to improve the quality of their product for the same price. This includes features, services, and many others. Using the right media outlet to deliver your messages is also important. This is the only way to assure your message is delivered to the right target market. The main challenge for companies is having a product or a brand that does not stand out. If you are not sure what the value of your product is, you need to work extra hard to clearly define what it is.   How to Create Value? There are products that need to improve on their value perception, but there are products that need to create new value. What does this mean? It means that your current product..as it exists...has no value. Aside from creating new value for your product, you can also add value to it. You may choose to keep the price but add more quality to your product, or lower the price but keep the same quality. Keep in mind that customers always look at the price, but pay more attention to the value.  Solve the right problem, at the right time, at the right price and you are in business for the long run! Have you taken a look at your products lately? How much value are you creating right now?     Did you like this?   Thank you for listening to this episode! If you enjoyed it, please feel free to share it using the social media buttons on this page. I'd also be VERY grateful if you could rate, review, and subscribe to the Three Steps Business Podcast here.