Do you know the difference between price and value? They may seem the same, but they have differences that you should consider in your business strategy. Continue reading this article to learn more about it!
Ivan de Souza
May 18, 21 | 5 min read
difference between value and price
Reading time: 4 minutes
Financial management in an agency is essential, but pricing can be a difficult job, especially when the main question is determining the difference between price and value .
For some people, the two terms are synonymous, but that is not true. For example: Have you ever seen an item that you imagin to be cheap, but were surpris to see that the price was higher than you expect? That is probably because its value is high.
If you want to better understand these concepts that are so widely us in marketing , as well as their differences, stay with us and better understand the following points:
What is price?
What is value?
How to add value to your product or service without changing its
What is price?
Price represents a financial value plac on a product or service so that people can purchase it . Regardless of whether your business offer is simple or complex, price ends up being something that the lead asks about at some point when they contact your company.
The price can vary according to the level of quality of the service, the strength of the brand of the company that offers it, the purchasing power of the consumer and the average charg by the market. After analyzing all these points, it is possible to determine the price compatible with your segment.
What is value?
Unlike price, value refers to the public’s perception list of swaziland consumer email of the product or service you offer . Therefore, it is a more subjective analysis, as it can vary from person to person, since for each person there is a different importance behind the offer.
Let’s look at an example of an agency that offers marketing services for doctors . Those who ne someone to produce content for another niche will not pay much attention to this specialization. But those who are looking for marketing professionals who understand micine will surely see a lot of value in this differential.
How to add value to your product or service without changing its price
Now that you know the difference between value and price, let’s look at how to apply value without having to change the price.
Branding
When there are things that money can’t buy, we immiately think of Mastercard. In the same way, when we hear “I love it,” we associate it with McDonald’s. This happens because the branding that these brands work with is very strong and they end up staying in the minds and hearts of the public.
Therefore, in order for people to be willing to buy your product or service —even if its price is higher than that of the competition— the first step is to strengthen branding, because when the moment of purchase arrives, it is normal for consumers to opt for the first brand that comes to mind and this is what adds more value.
Competitive differential Regardless of your segment, the truth
has to come out: markets are increasingly competitive, so the public currently has a wide variety of offers from your direct and indirect competition.
If their products are in the same price range as what is cdn and what is it us for? yours or if you charge more for your offering, how do you beat the competition ? The answer is simple, by delivering value in the competitive differential .
Let’s look at an example: Rock University is one of the branches of Rock Content that offers online courses in Digital Marketing. This is a r ocean , as there are many players offering the same product for better prices. Therefore, it was necessary to invest in the following competitive differentials:
Have teachers who are leaders in their markets.
Teach how to do Digital Marketing in practice and not just in theory.
Issue certificates that are requir by many companies in the sector.
All of this means that students see greater value aleart news in Rock University courses and enroll, even if it requires a larger investment.