One of the business buzz words being liberally thrown around these days is “value.” Seldom does anyone stop to ask what it means.
To many, it defaults to low price, particularly in our current economy. But the experts tell us it can be about three things: One is low price. Another is product superiority and innovation and a third is customized customer service and solutions.
Consumers are looking for different kinds of value from different companies. Wal-Mart’s value is lowest prices, not innovation or customer service. Apple’s value is never-ending product innovation, not lowest prices. Nordstom’s value is strong connection with customers, not lowest prices or innovation.
What is your value statement? What are you known for? Do you offer the lowest prices? Do you offer a totally unique product that you’re always innovating? Are you an expert at customized customer solutions?
If you said all three, wrong answer. Choosing one of the three value disciplines is critical to success in THE NEW AMERICAN MARKETPLACE. It defines your business.
Without one special value that you deliver better than anyone else, I’m afraid about the future of your business.
Make it difficult if not impossible to compete with you. Choose and totally focus on one of the three key values customers are looking for.
Without a clearly designed perceived value, it will be difficult or impossible to compete in THE NEW AMERICAN MARKETPLACE.
What do you think?
Dennis, you bring up insightful questions that small business owners must be able to answer.
I also recall Roy H. Williams’ definition for value, which has always stuck in my mind. He states that value is the difference between the anticipated price of the product or service and the actual price.
Dennis,
I like the concept of defining the word value. (side note: I always thought it was funny how many food companies throw around the word “wholesome” in their advertising. What the heck is wholesome?!) I agree that it might be beneficial for a company to accentuate one facet, perhaps, I don’t agree, however, with the ’solution’. As a business I strive for perfection. I WILL supply the best service, with the most innovation and at the best price. That is my sole mission.
Rather than “selecting one of the three” I think it is key to recognize who you are and what you have to offer.
I always emphasized the fact that I offer the lowest price for the Services I provide! Even when I was selling Promotional Products I was never pushing a product, but instead my services to find the best relevant products for the clients events. I believe anyone can compete based on lowest price, especially if you don’t need money!!! You will never win business competing for lowest price unless you’re strictly an online store?