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Value vs. Price

AuthorAnyone who has dealt with buyers (in any industry) is continually confronted by objections over the cost of what we sell and it can really be a bit of a downer. We all want to be accommodating to our customers (who are often also our friends) so it is only natural to feel inclined to make a concession when that price objection is presented to us. So, it’s very important to consider what you communicate by selling at that lower cost.

Good, Better, Best
There’s always a value trade-off where price is concerned. You have the option of buying a lesser version of almost anything and personally I rarely opt to buy the lowest cost offering. I got a good sense of this recently when I was helping my son move into his new apartment. He had recently graduated from college and we were moving his stuff from our home and his old place at school. He definitely needed a lot of things to make his new place a home and after working at his new job for a few months, he had some cash to work with, but certainly not enough to buy everything he might need. He decided that he could make do with a second-hand bed that we had in the basement. That futon he’d slept on in college was a good option for a couch so he could accommodate visitors. He definitely needed some items that I would consider important but he had one item on his list that was a must-have…a nice television. Being a big sports fan and lover of video games, this was one item he did not want to compromise on.

So we had a few factors that played into his decision:

Screen size – 50” or larger. He had a nice size living room and didn’t want to buy too small and regret it later.Television_1
Quality – He had in mind certain acceptable brands and there was definitely a ranking to consider with price being important:
•  Samsung – Highly rated product and something he would pay a bit more for if it was within budget
•  LG – His dad has an LG and has been very impressed with the picture quality
•  Sharp – Another highly rated product and when comparing products side-by-side, it’s probably right up there with the LG
•  Vizio – Probably the best price point relative to screen size and also a highly rated product
Resolution and Refresh – 1080p resolution and minimum refresh rate of 120 HZ but 240 would be better (remember he’s a sports fan and gamer)

So the search was on and I watched the decision-making process at work as we saw how much more Samsung cost vs. Vizio. At one point I though the Vizio was going to win the battle but we decided to try one more retailer and found a manager’s special on a 55” Sharp with all the necessary quality considerations and at a great price. In fact, I’m sure he would have paid more for this TV than they were asking.

We found the holy grail, a perfect balance of price, quality and all those other considerations which filled that sweet spot nicely. My son walked away feeling that he had made a great purchase decision. I will try to keep this in mind when the price conversation starts with my customers. Yes, price is important but there are many considerations that go along with it. If both the buyer and the seller feel good about the transaction, then everyone wins!

About the Author

Mark Nardoni is a Strategic Account Manager at Optima Graphics.
He has been in the Trade Show industry since the early 90s.

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