What’s your value?
People have value just as much as products and companies do. And, I think, sometimes people neglect to care for their own personal value. Which reminds me of a marketing equation I was taught many years ago by a great boss and mentor when I worked for the Gannett newspaper company.
To the customer, cost is price over value. Or, expressed in a pseudo scientific way:
C = P/V
C is Cost
P is Price
V is Value
As someone who provides a product or service, the only concrete element in this equation over which you have control is Price.
And Price is very different from Cost.
Both Cost and Value are perceived concepts – and they are determined by the customer.
In other words, the customer looks at the Price and decides whether their perception of its Value is equal to or less than the Price.
If it is, the customer determines that the Cost is acceptable.
So, if you don’t want to lower the Price, then you need to find ways to get the customer to elevate their perception of its Value.
Which is what marketing is all about.
Marketing and public relations pump up the V so that it’s much more than the P.
And remember: the customer decides two out of three of the variables in this equation.
If you make the product better, you need to make sure to let the customer know. If the product is already as good as it can be, you can still pump up the V by reinforcing its benefit and necessity.
I’m working on pumping up my V. How about you?
So sayeth the StickMonkey.