The Difference Between Cost and Value

As consumers, most of us are looking to pay as little as possible for goods and services. Doesn’t matter if it’s a B2C or B2B purchase, the same disposition generally applies.????

To put it more directly…

We’re a “deal-driven” society, and nobody (in their right mind) goes out of their way to pay MORE money for something they can readily get for LESS money. End of story.

Not surprisingly, this mindset presents a challenge for any salesperson tasked with selling an expensive product or service. Especially if there’s nothing unique about it.

Sorry to say, but in the absence of one or more obvious benefits or distinctive characteristics, the cost of the product or service becomes the primary (if not only) thing a prospective buyer cares about.

And because there’s nearly always somebody out there who’s willing or able to provide a “common” product or service for less money than the competition, selling on price alone is a losing business strategy.

It’s a race to the bottom that typically results in a slow, profitless death for anyone crazy enough to enter it in the first place.

That may sound like a harsh pronouncement, but more often than not it’s the truth!?

The way around this, of course, is to switch the consumer’s focus from the cost of your offering to the value it provides.

While cost and value are two very different matters, they frequently have a direct correlation to each other in the minds of consumers.

Many people reflexively assign high value to things that cost a lot of money and little-to-no value to things that are inexpensive. Value, in these instances, tending to be more subjective than objective. That’s the bad news.

Here’s the good news…

Savvy sales and marketing professionals can use “perceived value” to their advantage to distinguish themselves from cut-rate competitors. It’s THE way to remove your product or service from a crowded field of “me too” discount providers.??

This, in fact, is the whole point of having a clearly defined unique selling proposition (USP).

A product, service or brand’s USP is the thing that spells out in vivid detail what makes it so distinctive, desirable and valuable. When these characteristics are made clear in the course of a marketing campaign and/or sales conversation, cost becomes almost a non-issue!

As you might expect, many people will readily (even gladly) pay more money for something they perceive to have significant value.

A salesperson who understands this, is lucky enough to represent a product or service that has a killer USP and is able to precisely and enthusiastically articulate its value to the consumer, will never again have to worry about price-gouging competitors.

THAT is the difference between cost and value!?