Focus on Value and You Will Succeed.
Price and Value are not the same.
If you start your business and operate under the mindset that price and value are the same then I guarantee that you will fail before your business really has a chance to mature.
Over this last week , I have been reading a book titled The Go-Giver. The foreword describes this brilliant piece of literature as “A Little Story about a Powerful Business Idea”. That is exactly what it is. The book is centered around a young salesman named Joe ,a self-proclaimed go-getter, and his journey to learn the Five Laws of Stratospheric Success from his new mentor.
I can honestly say the book has been eye-opening and the laws are simple enough to immediately start applying in everyday situations. I have seen instant results from practicing the lessons taught in this book. But its the first law that I want to address in this post.
The Law of Value.
“Your true worth is determined by how much you provide in value than you take in payment”
Price is a definite monetary amount where value is what you are actually worth. Have you ever worked somewhere or for someone and thought that you were being woefully underpaid? Statistically speaking you were probably right. But have you ever stopped to consider how much you were actually worth to that employer.
Like seriously considered it.
You may be getting paid 40k a year but in reality you might be bringing the business 3x that in revenue. Now a reasonable person would not just take that knowledge and rush into their bosses office demanding a 3x pay raise. What you could do instead is to raise your worth in your employer’s eyes until they have no choice but to cough up the extra cash or risk losing you to a competitor.
The value you provide to people is what determines your potential worth.
If you don’t believe me then let’s think about Apple. Apple is valued as a trillion dollar company. They are the first company to ever reach that valuation. Now why is this? What made them stand head and shoulders above their competition to be able to reach this echelon?
They provided more value to their consumers than what their competitors offered.
Steve Jobs had a greater passion for what an iPhone or Macbook could do for the end user than what he could charge for it. Now relatively speaking yes an Apple product might be one of the most expensive items that you own but think about the product actually means to you.
iPhones have fundamentally changed how we interact with the world. People do not communicate the same way anymore and that is because Steve Jobs had a vision of the value he could provide with his iteration of a phone. Steve’s and Apple’s creation have put us on a digital expressway to the age of information by allowing us to stay connected to the internet 24/7. Now while this has positive and negative aspects, there is no denying that the iPhone has had a huge impact on our of lives. This is why Apple is able to charge $1300 friggin dollars for a new phone.
The phone is so powerful and useful that it has the potential to completely change one’s life. A truly driven individual could use that phone to its full capacity and maybe start a whole business off with just that phone. Now let’s say that business brings in 100k in revenue every year. Well now that initial $1300 seems minuscule. That’s not even including all of the personal freedoms running your own business brings. The value of the phone now outweighs the price.
This is why Apple is worth a trillion dollars. They provided their customers with more value that what they took in price.
How to achieve success with the law of value.
Your focus must be 100% on your client/end user. Do you know what they expect from you or your competitors? If so what are you doing to exceed that. Its not just about drawing level with what they want its about predicting what more you could be doing. Even if its just the little things.
In my neighborhood there is a cafe that I frequent to work on my freelance business. This cafe is very quaint , the owners are nice, and the food is amazing. After a month of me stopping by regularly , one of the owners asked me what I do (aka why am I always sitting in the corner with a laptop, a tablet, and a notebook). I told him I work a full time job but am in the process of starting a marketing freelance business. He then asked me who my target audience was. Embarrassingly enough I had not thought about this and mumbled back,
“Well everyone and anyone I guess” . This was spoken like a total amateur.
The owner laughed and said “Come on man you have to focus!”. He then began to tell me about all the things a restaurant owner would want from a marketing consultant.
I left there feeling completely revitalized! Not only had the owner given me advice on how to refine my pitch, he had also helped me zone in on a niche! About two weeks later I came back to the cafe and he had a gift for me.
It was a glass turtle.
“It’s for inspiration” he said as he handed me a small silver gift box.
This is what I mean by focus on your customer and go above and beyond. I went to this cafe for food, coffee, and an environment to grow my business.
I really only expected the first two things but he was able to provide me with all three.