Since I started in business, now almost six years to the day, I heard things about delivering massive value, we often say something was either good or bad value for money and our mentors encourage us to focus on communicating our value proposition rather than how much something is. So I thought why not go a bit deeper into how I have learnt to understand value. There are 3 Key ways I look at it:
- What is the Perceived Value
- What Kind of Experience will I have
- Am I likely to achieve an awesome Return on Investment
Lets look at these in detail:
1. Perceived Value – there are two types of value, perceived and calculated value. We often see this in a Table of Value where things seem to be valued a lot higher than what you pay. This happens because if you were to purchase each individual item in a package separately it will be that price point per item.
It’s not an over-inflated price that is made to look like its more even though some people think it is. Perceived value is also about a feeling and not a calculation. It’s a potentiality of how awesome and high value a package is and because you are buying it as a package, you get a bundle of things to help you reach a solution to a problem a lot easier.
In my world of helping others through my Ultimate 48 Hour Author retreats, if people went out to look for each item we provide from different vendors, they would pay so much more than the wholesale prices we negotiate with the suppliers we use. Not to mention the time they would waste not knowing who to go to and what to do next. The investment is packaged and secured as we self publish in bulk and thus get awesome deals under our Ultimate 48 Hour Author Program.
This allows us to have a profitable program but also one that helps others achieve their goal of writing a book 10-15 times faster than if they were doing it themselves.
2. The Value is in the Experience – there is a famous quote by Jay Danzie: ‘Your Smile is your Logo, Your Personality is Your Business Card, how you leave others after an Experience with you becomes your Trademark.’
In the world of high value sales this is the most important thing that you must focus on. High value sales is when what you are selling is a high end product or service. Just think about Chanel or Porsche or travelling 1st Class. You pay 10 to 20 times more than what a bag, car or travel costs normally cost. Why? The Value is in the Experience. I happily shop at Chanel as I value every moment, quality and continuous ‘wow’ moments I receive from them. Could I buy bags and wallets at 10% of the price I pay. Yes, but I value the full package I receive when I go to Chanel.
What type of value do you deliver to your clients? How do you wow them and get them to think of you as the Number 1 provider for the problem you solve?
People think selling a more expensive product or service is harder and can often be tempted to discount or reduce prices – I beg to differ as I have found selling my books at just $20-$30 or other products/services up to a few hundred dollars has often been harder than selling my high end retreat program.
The Value is in the Experience – focus on that and you will not only be able to attract those you want as ideal clients but you will end up with a huge percentage of word of mouth referrals.
3. Return on Investment – when I look at making my buying decisions, I also future pace and ask myself if what I am being presented with will get me a 10-20 times return on investment. Now I also know that to get that, I must take massive action with the tools that I get shown or given. I am fully aware that ROI does not come just because you have paid someone for a product or service.
You must do the work, follow the rules and step up to get to your results. You must move your own mountains. So if I can see this future outcome and am willing to do the work, than my answer is ‘Hell Yes’ and I take the leap to commit to that.
So there you go, Value unpacked the way I have understood it over the past six years. If someone gives you the old excuse: I don’t have the money or time, that is not the truth. The truth lies in the fact you have not been able to demonstrate and communicate the value of your product or service correctly or its not a good match or priority for them at the current time. Keep working on this and improving your Value Proposition and ‘Wow’ Experience.
Love Nat x