“Price is what you pay. Value is what you get.” – Warren Buffet
In this time of inflation affecting everything we do, it’s easy to get distracted by prices, wondering if it’s really worth it still. It’s easy to lose track of the true value of things when all we can think about is whether or not we can afford them.
How can you decide what’s still worth it and what isn’t? Whether you are purchasing products or services, setting the prices for those products or services, or even just working towards a specific dream and pondering the price tag along the way, you’ll have to decide for yourself.
Whatever the case, you have to judge the physical, immediate price versus the more ephemeral, possibly lifelong value in your life.
So, what does determine value?
Value is a rather subjective word, in its many denotations, but the essence of it implies importance, worth, usefulness, benefits, or even a fair return or equivalent in goods, services, or money for something exchanged.
Value is not based on the manufacturing process or quality of the parts. If it doesn’t work for the customer and does not provide a benefit, it has no value. And if a product has no value, then customers won’t buy it, no matter how impressive the sales pitch.
When you know that you are selling value, the price tag won’t matter. Clients or customers will want it, no matter what the cost. Ask yourself:
- Does it work for me? Does it work for my employees? Does it work for my customers/clients?
- Does it help me? Does it help my employees? Does it help my customers/clients? How?
- Can I put the value into words? If so, that should be your sales pitch, because the value is what you are really selling/buying.
Invest in True Value
Whenever you want something badly enough, you’re willing to do almost anything to get it. If you want to become a lawyer, a doctor, an accountant, etc., then you’re willing to pay for and work on getting the necessary education. If you want a nice TV/phone/computer, then you’re willing to pay the price.
There are lots of names for this (ROI, Income vs. Outcome, reap what you sow, etc.), but they all mean the same thing. You have to put something of import in, usually time or money but sometimes a more personal sacrifice, to get the valuable outcome you desire.
The same concept applies to every aspect of business:
- As an entrepreneur, you have to invest in yourself and in your idea to get your business started.
- To have a productive workforce, you have to put in the time and effort to hire competent, compatible people. And you have to continue to invest in them to keep your returns growing: training, vacations, career counseling, etc.
- Put in the time to develop appropriate, efficient systems and processes, and you will save time and money in the long run.
Assessing The Value of Your Business
“When you’re confident in what you bring to the table, you don’t need to chase and beg anyone to sit down and eat.” – Stephan Labossiere
Don’t dismiss the value you already have, of course.
- Consider your focus and core values, your mission, and the execution of it. Is everything aligned? Or do you need some help to line everything up properly?
- Consider your employees. What are their talents? Are you properly utilizing them and their abilities in their current position? Are there any employees that you can train and help to take over a leadership position in the future (Hiring from within)?
- Consider your processes: what is currently working? Is everything doing what it’s supposed to be doing? Could you get more value out of a process by making it more efficient?
Stop Undervaluing Your Business – Start Investing in It
Value is such a suggestive concept that it takes a lot of thought to determine. Hopefully, the above ideas will help direct your meditations productively, as you start trying to invest more in the value of your business.
If you need some outside perspective or some coaching to actually implement new ideas, reach out to our Business Coach.
If you are wondering about the price vs. value of hiring a Business Coach to help you, check out this article.