Price vs. Value?

How do you price something that is invisible, like a service? Yes, you may know that what you’re offering is priceless and invaluable. But price is not based on value as much as it is what it can be sold for.

In the eyes of the purchaser, VALUE is based completely on how much something is wanted and needed. In an emergency, however, “NEED” is the prime motivating factor, far above all other considerations. In most other cases, “WANT” takes top priority.

No matter what you’re selling, your job is to create or enhance “want.” Price and cost are secondary to value. And value is monitored by how much something is WANTED or NEEDED.

When you run into resistance about the price, you haven’t demonstrated the value enough. When they are convinced that the VALUE is greater than the PRICE, the deal will close.

Never forget that the perceived value of a service diminishes dramatically after that service has been delivered.

Daniel Jacobs, 2016