Business owners continue to be challenged to reduce their prices and in many cases reduce their margin. When the product you are selling is not a commodity, it is your responsibility

So actually what is this value, how would you define this concept?

The Value Formula: Value = Benefits – Cost

Please note this down somewhere prominent and when a member of your team asks you if they can discount – point this out to them.

As a business owner, it is important for you to add VALUE for your customers.

You can achieve this by reducing the cost or you rcan do it even more by increasing the benefits that they will get. Either way, the value for the customer increases.

Reducing the Price is the QUICK Fix and you will find yourself repeating it time and again.

Increasing the Benefits needs to be learned, taught and understood but once it happens it will actually benefit your for ever because your team will understand.

The price is what your customer will pay, the value is the benefit that they derive from the product. There are benefits associated with the buying process, the peace of mind associated with doing business with you, the follow up or after sales. there are a number of ways that you can add value.

When you reduce the price for the customer, you do improve the value they get in the immediate short term, BUT you greatly reduce your own ability to build value into that customer in the long term. Coupled with the fact that the customer is of less value to you. You reduce your ability to nurture and look after them as well because you have less profit in your business. DO you really think they want that – especially if there was an opportunity for you to add real value.

People remember the value and experience the benefits of a product long after they forget how much they have paid for an item.

If you would like to find out more about improving the margins in your business, hit reply and request a free assessment.

thanks

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About the author,

Hi I’m Derek O’Dwyer. I have been an ActionCOACH for the last 18 years. I live in Clare and work with businesses around Ireland to take their business to the next level. I am passionate about business and providing help and advice. In the past 18 years I have worked with over 400 business owners helping them and their business. I adapt my coaching depending on what you and your business need. I find that each coaching relationship is different but as long as we understand that we have a common objective with timescales, positive things happen quickly. I am a firm believer i the concept of “what you can measure you can manage” and “what you measure you can improve”. Key performance indicators and accountability form the bedrock of my coaching platforms. If making more money from your business, working less hours in your business and having a great team running your business then it’s worth having a discussion with me. If you are willing to implement changes I will be there to help every step of the way. In terms of personal accolades and recognition I have been awarded ActionCOACH of the year in Ireland every year for the last ten years In 2019 I was inducted into the ActionCOACH Global Hall Of Fame I was global Rookie Coach of The Year in 2002 having achieved remarkable success as the first ActionCOACH in Europe. Many of my clients have also received awards from their peers for their business improvements.

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