Value

Two weeks ago I determined that I want a new, smaller truck. I need a truck because of my hobbies, but I want a smaller truck because of gas prices.

I went to the dealership and in about 15 minutes I had my truck picked out. I gave the sales rep my bottom line price - $325 per month. He told me that if we do business, he could meet that price.

I called him about an hour later and said I was ready.

The price came back to $367. Yup... he wanted a lot more. And he didn't even see it as a problem that I was already quoted almost $50 less.

Idiot.

I then called two other dealerships. This time I didn't tell them where I wanted to be but that if they could give me their best price for the truck and it fit my budget, I would buy before the end of the week. They never called me back.

It is awful hard to show value in your product if the customer experience that you are fostering is that of complication and deceit. I guess I'll wait a year and try again.

Sale lost. continue reading...

If price isn't the determining factor in the purchase of something, but just a contributing factor, can we say that there is one, single, determining factor? I believe that the answer to this is a resounding "yes."

I think that one, determining factor is the value that a consumer places on a product or service. Value is the culmination of product, price, place and promotion. Value is the worth the customer places on a product as compared to the cost. When I say cost here, I don't necessarily mean monetary cost. I mean cost in terms of time, effort, money and energy. I mean cost in terms of what it actually takes for you to buy something.

How do you increase the value of the product you sell? How do you establish a greater worth to your "commodity?"

Is it by adding more, differentiated products?

I don't think so, I think that it is about providing the best customer experience.

So, how do you conduct business so that people are willing to pay more for the experience you provide? continue reading...