When was the last time you stopped to consider the ‘price’ and the ‘value’ of the products you sell in your business? Not recently I suspect. Much marketing today confuses these two words.

I was recently making a purchase online that offered some ‘bonuses’ and as a result I fell to thinking about ‘price’ and ‘value.’ A lot of advertising these days, especially for information products, talks about a product having a ‘value of £27’ (the amount is not important for this example).

I suddenly had a thought this morning:

And that thought was….. If the product only has a value of £27 why would I bother buying it? The time I would spend reading the product is worth more than the product itself. Of course the people doing the selling really mean the product has a ‘price’ of £27. Generally speaking there is not much point paying £27 for something that only has a value to you of £27.

You may think I am splitting hairs but I am not. Whenever someone says your product is too expensive they really mean they are not convinced the ‘value’ exceeds the ‘price’ by a sufficient margin to make a purchase worthwhile.

Maybe the value does not exceed the price or perhaps your marketing message was not strong enough. Bear in mind that value is in the eye of the prospect. One person my think your product is has a value to them of £100 while someone else thinks the product only has a value of £50 to them.

Let’s consider an example from my own situation. Sometime back I produced and distributed free of charge a short ebook called “6 Keys to Double the Value of Your Business,” perhaps you had the opportunity to read it. This book provides you with a basic blueprint to double the value of your business and free up your own time. The time taken to double the value of your business will depend upon you and your circumstances but it can be done. I have done it before and will do it again.

The cost of that book was zero but its value could be HUGE. If your business is currently worth £1m and you double its value over the next couple of years as a result of the stimulation provided by reading this small book then the value of the book has been substantial.

Most people will do nothing with the information contained within the book. A few will like the idea but will not know how to go about it. A few will think about calling me to see if I have time to work with them on a one to one basis (I work with a limited number of clients at any one time).

Am I cheap? No, but relative to the gains you make by doubling the value of your business, Yes. Depending on you and your circumstances ‘value’ can substantially exceed ‘price.’ Mmmm….. perhaps I should put up my prices.

The point is this:

People will buy more of your product if they believe it’s value to them exceeds the price they must pay. The greater this differential the easier the sale will be. If you wish to increase your sales try increasing the value you are providing.

In the current economic situation many business owners think about reducing prices in order to increase sales. Before you go this route I suggest you develop ways in which you can increase value while keeping your prices steady.

Why not spend some time today brainstorming ways in which you can increase the value of your product substantially more than you increase the price. Consider creating two or three levels of product where value exceeds price by increasing amounts. You can then upsell customers and prospects to the higher value product.

Wishing you every success

Stuart Lockley P.S.

If you are UK based, wish to double the value of your business but would like some help then go here http://www.stuartlockley.com/Contact.html and use the contact form to get in touch with me. An exploratory chat does not cost anything and there is no obligation.

P.P.S If you are not UK based but have a question you would like to ask please feel free to send it in.