Compete on Value

Old Cash Register

As I’m building out Human Business Works, I’m experimenting with creating new products and understanding what works and what doesn’t. It’s exciting, because it’s a chance to own all aspects of the experience, instead of being the marketer who’s brought in to work on making something sell better. In other words, it’s having my own ponies in the race.

Part of this is thinking about price. I’ve written about price points before. It’s something I think about often, as it’s one of the core parts of understanding business, business models, and marketing. I once read this article by Russell Simmons, where he talked about why his clothing line spread out from value stores to premium stores, where most people were working to catch just one segment of the market. It was fascinating reading. In a way, that’s what I’m working through, as well, including giving a $27 webinar on blogging. It’s a way to reach more people who could benefit.

Competing on Value

But here’s the big point: I compete on value, not price. Meaning, if I give you something at whatever price point I charge you, I’m going to give you as much value as I can afford to put into it. The difference, in my view, is everything. Some people look for ways they can give you something cheaper than the other guy. Others look for ways to make a less-functional version of what they sell at higher points. But that’s competing on price.

To compete on value, the goal is, “always deliver more than what people expect at that price.”

In Third Tribe, I give away lots of my business methods to members as part of what they get for their money. When I consult with clients, I give them as many ideas as I can possibly come up with, and then New Marketing Labs works to execute the ones they like. When I speak professionally, I try to give as much of my time and attention to the people I’m speaking with, instead of just doing my speech and leaving (oh, and I write custom speeches for each audience).

That’s my view on value. Give more than people expect. Find the right price points to reach others, but don’t create those price points by taking something away. Do it by finding out just how much value you can afford to stuff into that price point.

Thoughts?

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