K(NO)W MONEY – Hey D(J)ude Dudette (part 2 of series)

“Price Is What You Pay, Value Is What You Get”

Price vs Value:
Both price and value are the two sides of the same coin. Understanding the difference between price and value is the core principle value of money.
Sometimes your customers know that you provide a feature they want, but for some reason, they don’t use it. Why does that happen?
It’s a value problem.
You know you have a value proposition problem when you hear the following:
- I just haven’t gotten around to it yet.
- It’s pretty expensive.
- I will once I get the time.
- We can’t afford it yet.
- That’s not important for us right now.
You’ve heard these before, right? They all mean the same thing: “I don’t see the value.” You see, cash isn’t the only thing businesses spend. They spend time and focus too.
Money is usually the least of the concerns.
Yes, we all seek to be the premier affiliate marketing evangelist out there, and yes talking about pricing does bring us potential customers. But, let us be clear: pricing is not important because we’re in the industry. Rather, we’re in the pricing industry because it’s that important to businesses everywhere. This distinction is imperative.
Pricing is the reflection of everything you do as a business, from your product development all the way down to a link to your website, because we live in a world driven by value. Nothing else defines a business and a product more.
Regardless of your product or service, pricing decisions remain an afterthought for many growing businesses. Your strategy on pricing could shape your overall profitability for the future.
Depending on who you ask, a business serves hundreds of different purposes and embodies hundreds of definitions. Businesses provide jobs to individuals supporting themselves and families and they produce goods and services for those seeking them. Yet, to summed it up simply, my favorite definition is businesses exist to provide value.
Pricing is simply the exchange rate you put on all the tangible and intangible aspects of your business.
The moment you make a mistake in pricing, you're eating into your reputation or your profits.
Pricing is the most critical component to maximizing your revenue. With bad pricing, you’re missing out on profits in every transaction that you make, not to mention the deals that you completely miss out on. Pricing is also a big factor in your branding and reputation. Prices that are too high can make you come off as arrogant, while prices that are too low can call the quality of your product into question (would you eat a steak that only costs $3?).
And remember, there’s ONLY one person that can make you inferior…YOU. Make sure you value yourself well. Because…YOU…are the valuable product they buy.
Have a wealthy journey!