Dave Gardner’s “Thank God It’s Monday” 30JAN12

“Thank God It’s Monday” is to help companies thrive!

This week’s focus: value

A good friend heard her services are “expensive” by way of third-parties who have never worked with her. Her clients sing her high praises while the folks who could benefit from her services flounder.

If a product or service delivers exceptional value far beyond the investment required to acquire the product or service, is it expensive? Certainly not.

Value comes from the outcomes that flow from money invested. If the resulting value is small, then the price might indeed be “expensive.”

If the value is substantially greater than the investment required to gain the benefits of the product or service, is it expensive? No.

The people and companies that thrive base investment decisions on outputs or outcomes produced for money invested in products or services.

Thought for the week:

“Creativity involves breaking out of established patterns in order to look at things in a different way.” – Edward de Bono

What do you think? I welcome your blog comments!

___

Dave Gardner, Gardner & Associates Consulting

http://www.gardnerandassoc.com

© 2012 Gardner & Associates Consulting  All Rights Reserved

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3 Responses to Dave Gardner’s “Thank God It’s Monday” 30JAN12

  1. A great reminder for all of us, Dave, that we need to be constantly thinking of ways to communicate “value” in our marketing and other materials. Presumably that’s what was missing that prompted those third parties to make that assumption about your friend?

    It’s particularly important for those of us who often get lumped into a “category” (in my case it used to be book coaches, which drove me nuts, lol) to find another way of describing ourselves — but more importantly, to clearly articulate what the client gets for their investment.

    This very issue prompted me to create an infographic outlining the various services I offer, including examples of various typical price points and what was included. I could see someone thinking $40-50K was a lot to pay someone like me to help them write a book…without realizing they’re getting a strategic consultant, co-author/ghost, project manager, social media adviser, etc. etc. in one! With this visual (at: http://drlizalexander.com/services-process-and-pricing/) interested parties can see that they don’t have to have that size of budget — unless they want that additional, high-level value.

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  2. Dave says:

    Liz…the people who were complaining about my friend’s services as being “expensive” knew nothing other than the price of her services. And, because they couldn’t afford it, they labeled her as “expensive.” You get what you pay for, right? Do you want to be the cheapest? Or, offer the greatest value? Can you offer the greatest value for the lowest possible price? Certainly not. So, when you pay more, you expect to get more value. These people seemed to believe they were simply paying more without acknowledging there is dramatically more value derived from my friend’s services. We constantly have to communicate value in terms of return-on-investment and outcomes, both quantitative and qualitative. Thanks for your comment! Dave

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  3. Yes, really interesting issue here. I know I’ve been on the other end of the stick. For example, recently I met a coach who wanted me to part with $15K a month (and we’re not talking a one month resolution here!) for services and I couldn’t for the life of me see that there was that much value in what she was offering over and above what I could get from someone I’d worked with who was nearer the $600/mth mark.

    “Value” is such a subjective term. I guess the $15K lady felt she was offering value because of how much time she was making available to me (I think…she never did adequately articulate her value proposition). The fact was, I didn’t need – or want – that much time in a month, so her value in that example was irrelevant and not appropriate to my needs.

    Such a fascinating topic you’ve touched upon. My goodness..there could be a book in it, lol. Cheers, Dave!!

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