Value is what the customer is buying– not what you’re selling

In a previous post (Be Better, Not Cheaper) I talked about the importance of differentiated value.  I have conversations about value almost as often as I have conversations about pricing, because a lot of pricing confusion is really value confusion.  If you don’t know what your value is, it’s hard to put a price on it.

Part of the challenge is going from “inside-out” thinking that focuses on your company, to “outside-in” thinking that focuses on what customers care about.  From a customer’s perspective, the price of your offering may only be a small part of a much larger value equation.  It’s easy to get hung up on the price (and offer deep discounts) without addressing the real issues that can hold up a sale.

Now Sales Compass includes the ability to map out the value you provide.  If you don’t have a Value Framework for what you sell, go in and create one (or more).  Show it to your colleagues and discuss.  I bet it clarifies a lot of pricing issues.