Price and Value Are Not the Same

My Grandfather used to say “Price without quality is waste.” What he meant by that of course was that getting a good price on a bad or wrong product was not a good deal.

 

He ran a small grocery store for nearly 50 years. He started when all grocery stores were small and it was his philosophy on price vs value that allowed him to survive when the “corner stores” were being devoured by the Supermarkets. 

 

He knew that “price” was simply what people paid and that “value” was what they received in return. When people were convinced that there was additional value to be had they would willingly pay an additional price. 

 

Good organizations and great salespeople know that same thing. They do not sell on price, they instead sell the value that their product or service offers their customer. 

 

To be sure there are some people who buy almost solely on price. Most often these buyers won’t be tempted by value because they are relatively short-term thinkers. A common refrain is “I can buy two of these for what I’d pay for one of those.” That could be true but what they fail to see is that the “one” will perhaps last 4 times longer than the “two.” 

 

But here’s another reason so many people seem to buy on price: poor salespeople cause them to make that mistake. 

 

Poor salespeople do not have the ability to communicate the value their product provides the customer. When a poor salesperson, or more likely, a poorly prepared salesperson hears their price is too high they immediately begin thinking they need to discount their price to earn the business. What they don’t understand is that they aren’t “earning” anything by accepting less for their product or service, they are merely buying a sale. 

 

When a salesperson buys a sale it’s likely everybody loses. The salesperson and their company obviously loses; they have built value into the product and they are not receiving the money they need to sustain that value. 

 

But here’s a surprise; the customer likely loses too. They lose because the product or service that they want will eventually go away. If it doesn’t go away the service that came with it will decline and they will really need the service because the value and quality in that product will almost certainly decrease over time. 

 

When I was just a kid I’d be at the Farmer’s Market at 4:00am on Saturday morning with my Grandfather to hand select only the finest, freshest fruits and vegetables that our customers would buy later that day. 

 

I suppose that most people don’t remember those days but when I walk into the produce area of my local supermarket today all I see is the stuff we wouldn’t touch back then. Today if you want truly high quality fruits and vegetables you either go to a speciality market or you go directly to the Farmer’s Market yourself…and you pay more, especially at the specialty markets,…because you see value in the quality. 

 

It turns out, price without quality IS waste, maybe not a complete waste but you’re certainly not getting what you pay for.

 

If you’re a salesperson today then learn the difference between price and value. Understand that you’re doing your customer a disservice by not explaining the value your product or service provides to them.

 

They may feel lucky getting a good price today but the sting of poor quality far outlasts that lucky feeling. 


Your customers, and most every bit of research supports this, your customers would rather pay a fair price for true quality than receive a low price on an inferior product. When you understand that absolute fact then you understand what you need to know to actually earn a customer’s business.

What Are You Selling?

In the factory we make cosmetics; in the drugstore we sell hope. – Charles Revson

Charles Revson, the founder of Revlon Cosmetics, was not a well liked man. 

He was so offensive in fact that vendors often refused to do business with him. But in spite of his personality he still managed to build a multi-billion dollar cosmetic empire.

That’s because he knew what he was selling – and it wasn’t cosmetics.

His quote above said it all. His ads sold hope by using most of the ad’s space on images of beautiful movie stars and glamorous models. The add copy made bigly promises of instant beauty with nearly no effort. He understood that nobody really wanted cosmetics, what they wanted was the beauty. So that’s what he sold.

I remember one of my first sales managers telling me that the best salespeople sell verbs, not nouns. When it became obvious that I didn’t understand what he meant he clarified it by saying they don’t sell the steak, they sell the sizzle.

Through the years I’ve come to understand that the best salespeople don’t sell their product, they sell what their product can do for a prospect. 

The challenge here is really two-fold. First you have to be selling a product that benefits someone. Then you have to find that someone it benefits and show them how it helps them.

By the way, if you are trying to sell a product without benefits then you need to find another product. If your product is the equivalent of an artificial appendix then it may work great but finding a market for it will be nearly impossible.

If you want to sell more next year then don’t sell what you’re selling, sell what people are buying. Don’t sell what your product is, sell what it does and most importantly sell “why” it does it.

Develop the mindset of helping your customer, not just making the sale. The very best sales professionals know that the more they help the more they sell. The very best sales professionals are passionate and enthusiastic about how their product or service helps a customer and they pass that enthusiasm to their prospects.

Just remember, people will seldom actually buy your product, they will buy what it does….for them.