Is there a difference between value and price? Have you ever lost business to a lower priced competitor? Unfortunately, most consumers make their buying decisions primarily based on price. In many cases, this is a very expensive mistake.
Imagine you need the services of a handyman. After reading online reviews, you select two promising candidates. One quotes a much lower hourly rate, and they get the job.
After the project is done, you get billed for 80 hours of labor and $2,000 worth of materials. What if the other handyman was more knowledgeable and efficient? What if they could have done the same job in 30 hours, and had contractor discounts on all the materials? You could have saved time and money by hiring “the more expensive†handyman.
Now imagine you are going through a divorce. You hire a budget attorney with a low retainer and hourly rate. Your spouse hires a family law specialist with a much higher hourly rate.
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After the case goes to court, it is obvious you made a mistake. Your attorney was constantly on the defensive, and not as prepared. They spent hours researching case law and preparing arguments the other attorney had committed to memory.
In the end, your spouse was awarded primary custody of your child and received most of the community assets.
These examples illustrate the difference between value and price. Price is what you pay, and value is what you get. When consumers choose services based on price, they often pay more and get less.
Your challenge as a business owner is to teach your customers the value they will receive, in exchange for the price you charge.
Nordbrock
