3 Types of Value

There are three main types of value … and the price people will pay is different for each of them.  

Get clear about the value you create and you will become more willing to defend that value.

Your product or service either: 

– Fixes an existing problem by removing a negative for the customer … or provides them with a positive they want but don’t have.

– Prevents a future problem by insuring against a potential risk … or promising them a future gain if they buy what you do.

– Improves the current circumstances where there isn’t really a problem but the customer wants to upgrade from old to new … or make what is already good, even better.

When we fix a problem we are in the realm of pain price.  Price sensitivity goes down as the level of pain goes up. However, you need to be prepared to promise that you can fix their pain.

Prevention triggers comfort price and this is is the hardest price to deal with. You must have a clear and strong articulation of value for this scenario.

Improve evokes ego price and interestingly, people who are at this position may even balk at a price if it is too low – “you get what you pay for.”

So think about value and the type of price perception each creates and then craft ???? sale accordingly

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