Why “Value” means “Profit” for Your Small Business
We all know that customers don’t pay for nothing, they pay for something. At the core of every purchase, customers aren’t just spending cash and coin for your small business’ product or service. They are really spending for value.
The Value Gap
Value is basically the the difference between what a customer gets from a product, and what he or she has to give to get it.
You want that “difference” to be perceived of as large of a gap as possible. Your customer or client should feel that they are getting way more than what they give. When that happens; what they have to give isn’t the most important factor in their buying decision.
Process v. Product
Remember that value does not come from the result of what you create.
Value is not “created” from your product. It comes from the input and processes. So make sure your internal input and processes are streamlined and taken care of. A good example is the chicken and the egg—you can’t “sell-sell-sell” eggs (product) without feeding and tending to the chicken (process).
Process is important and needs your attention.
Get the Message
Value does no good unless your customers “get it.” A critical part of making value work for you is in how you communicate — and deliver — it to your customer.
Your To-Do List
- Evaluate the exact problem or need your product/service solves.
- Communicate that value, and if possible, communicate it in a way that can’t be turned down. What is your “irresistible offer?” (Check out The Irresistible Offer by Joe Sugarman for more tips.)
- Deliver your value in the way that you communicated it would be delivered—or better. DO NOT under-deliver and under-impress.
To the entrepreneur and small business owner—take the time to strategize your input and processes. Then review exactly what your message is, and how you are communicating that value to your customers. Value produces profit because in essence, it’s why they buy.
Content contributed by Jessica Chaffee, SourceLink Tulsa. SourceLink Tulsa is a proud affiliate of U.S. SourceLink, America’s largest resource network for entrepreneurs.
