Tags |
|
|
Links |
|
|
Casual Articles - Creating, Recognizing & Measuring Value
At an elegant resort in Mauritius, the dessert menu was rather sparse. One customer asked the waiter for ‘The Special Dessert of Today’.The waiter returned from the kitchen and reported flatly, ‘We only have the cheesecake of tomorrow.’Nonplussed, the customer asked for further explanation.‘The Special of Today is sold out,’ the waiter explained, ‘We only have the cheesecake of tomorrow.’‘Well, can I have a piece of the cheesecake of tomorrow?’ asked the guest.‘I suppose
Function is what the product or service does in mechanical or analytical terms. Imagine you are buying a new car. If you are shopping for the best real value, you would get the most function efficient ground transportation for the lowest cost. You could measure the car's function factor by comparing it with the cost of your practical alternatives; public transit, car pooling, taxi, bic
“You mean I spend thousands of dollars in here, and I can’t return a defective tool?” The customer leaned across the counter.“Well, the tool isn’t really defective,” replied Luke, taking an adversarial stance.“So you’re calling me a liar?”The customer now had everyone’s attention in the sales counter area. His loud voice and aggressive manner caused some of the other customers to look at one another and roll their eyes as if to convey the silent message, Oh, one of those people.
Deliver value that your customers recognize, appreciate and reward. If you want your customers to value what you offer - you must demonstrate that you value them.
Value implies trust so start by building trust. Always under-promise and over-deliver. Be known for keeping your promise and then some. Be honest. Never promise what you cannot deliver.
Don't confuse value with cost. A product's value is almost never equal to its cost. For example, your product might cost you $2 and you sell it for $10. The value to you is $10. The value to the customer will usually be more than the selling price. If it was only worth $10 to the customer then they have no motivation to buy. But if the value to them is greater than the selling price, they are motivated to trade their money for something of greater value. It may be worth $25 to the customer. Then they will gladly give up $10 of their money for the product. The more that value exceeds the cost of the purchase, the more the customer will want to buy from you. Always offer value that is greater than the price they pay. Your challenge is to ensure the customer sees much more value than their cost.
The Value Formula How can value be so different from cost? Examine the following formula, then discover where you can concentrate your efforts to enhance value.
Total value = real value + perceived value
Let's take it apart to understand it. Real value comprises the tangibles. It is relatively easy to measure. Real value can be expressed in this manner:
Real value = function/cost
Function is what the product or service does in mechanical or analytical terms. Imagine you are buying a new car. If you are shopping for the best real value, you would get the most function efficient ground transportation for the lowest cost. You could measure the car's function factor by comparing it with the cost of your practical alternatives; public transit, car pooling, taxi, bicy
As the Internet continues to grow and produce large amounts of traffic the need for data centers and data center management increases. This continued growth creates data center jobs and IT careers in the technology field. Data Centers not only provide large hubs for Internet traffic, but it also completes the network infrastructure of most mid-large size companies. Data centers usually house thousands of computers, servers, and technical components. This in itself tells why it is a tremendous benefit
Don't confuse value with cost. A product's value is almost never equal to its cost. For example, your product might cost you $2 and you sell it for $10. The value to you is $10. The value to the customer will usually be more than the selling price. If it was only worth $10 to the customer then they have no motivation to buy. But if the value to them is greater than the selling price, they are motivated to trade their money for something of greater value. It may be worth $25 to the customer. Then they will gladly give up $10 of their money for the product. The more that value exceeds the cost of the purchase, the more the customer will want to buy from you. Always offer value that is greater than the price they pay. Your challenge is to ensure the customer sees much more value than their cost.
The Value Formula How can value be so different from cost? Examine the following formula, then discover where you can concentrate your efforts to enhance value.
Total value = real value + perceived value
Let's take it apart to understand it. Real value comprises the tangibles. It is relatively easy to measure. Real value can be expressed in this manner:
Real value = function/cost
Function is what the product or service does in mechanical or analytical terms. Imagine you are buying a new car. If you are shopping for the best real value, you would get the most function efficient ground transportation for the lowest cost. You could measure the car's function factor by comparing it with the cost of your practical alternatives; public transit, car pooling, taxi, bic
Anytime we assume that all people are functioning at the same level behaviorally and emotionally in the workplace, we are sure to be surprised. Surprised when we encounter a co-worker who responses to what we thought was a simple comment with an emotional outburst that resembles that of an eight-year-old rather than a thirty-year-old.Although emotionally immature employees can be a cause for difficulty at any level according to Sherry Buffington, Ph.D., as they progress up the organization the grea
The Value Formula How can value be so different from cost? Examine the following formula, then discover where you can concentrate your efforts to enhance value.
Total value = real value + perceived value
Let's take it apart to understand it. Real value comprises the tangibles. It is relatively easy to measure. Real value can be expressed in this manner:
Real value = function/cost
Function is what the product or service does in mechanical or analytical terms. Imagine you are buying a new car. If you are shopping for the best real value, you would get the most function efficient ground transportation for the lowest cost. You could measure the car's function factor by comparing it with the cost of your practical alternatives; public transit, car pooling, taxi, bic
Ssshhhhh.... Did you hear that? It's the whisper of another brand trying to be heard.Against the clamor of consumer-controlled media and me-too product introductions with me-too pricing, it's becoming nearly impossible to find a voice that resonates. Marketers are grappling with the question of how to get consumers' attention. What does it take to get their ear?The answer is simple, but the process is far from easy. The best way to get consumers to listen, it turns out, is to learn how to l
The Value Formula How can value be so different from cost? Examine the following formula, then discover where you can concentrate your efforts to enhance value.
Total value = real value + perceived value
Let's take it apart to understand it. Real value comprises the tangibles. It is relatively easy to measure. Real value can be expressed in this manner:
Real value = function/cost
Function is what the product or service does in mechanical or analytical terms. Imagine you are buying a new car. If you are shopping for the best real value, you would get the most function efficient ground transportation for the lowest cost. You could measure the car's function factor by comparing it with the cost of your practical alternatives; public transit, car pooling, taxi, bic
We all have experience with unsolvable performance problems that plague the 20th century enterprise.- Periodic reorganization and upheavals, because the business is not organized- Faulty investment analysis because benefits cannot be itemized- Unbeneficial capital development, because unknown benefits are not managed to gain the return- Unmanaged capital, intangible assets, unknown costs, unknown value, distorted capital worth arising from the focus on cash and accruals-
Function is what the product or service does in mechanical or analytical terms. Imagine you are buying a new car. If you are shopping for the best real value, you would get the most function efficient ground transportation for the lowest cost. You could measure the car's function factor by comparing it with the cost of your practical alternatives; public transit, car pooling, taxi, bicycle, limousine, various car models. You might wish to consider the costs of these alternatives in terms of time and inconvenience. What does your new car give you that these other modes of transportation don't?
Having determined the new car's function factor, you can divide it by its cost. Is its function worth more to you than its cost? If so, the new car has real value. At the end of your analysis you would buy the cheapest car. Not necessarily. Remember that what you are willing to pay for your car is based on the total value to you, which is a factor of both real and perceived value. So, sometimes without realizing it, you assign value to less quantifiable benefits and buy something that you like. Liking is not part of real value, it is part of a product's perceived value.
Perceived Value = belief x emotion
Compared with real value, perceived value is more difficult to measure directly. Yet it can have greater impact on total value. Perceived value is the product of belief times emotion. It is influenced by intangibles such as image, credibility, beauty and feelings - all the benefits you should emphasize in your marketing efforts. Emphasizing your perceived value is the surest way to differentiate yourself from the competition - and gain you more profit. Perceived value is what makes a brand name more valuable than a no-name. Nike is one example of a company that built a fortune on perceived value. As individuals we think differently, perceive differently, and place different values on things. Beware of that. Use it to your advantage. When your prospect wants to negotiate price, remember to build up your p
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/28323/casualarticles-Creating-Recognizing--Measuring-Value.html">Creating, Recognizing & Measuring Value</a>
BB link (for phorums):
[url=http://www.casualarticles.com/article/28323/casualarticles-Creating-Recognizing--Measuring-Value.html]Creating, Recognizing & Measuring Value[/url]
Related Articles:
Business Jets - Is Owning One a Smart Idea for You or Your Business?
Slow Accounts Payable in Large Corporations Hurt Small Businesses
Is It Marketing or Advertising- Tips for Massage Therapists
Bookmark it:
|