What is value – a definition that helps!

by Magnus Penker on July 8, 2010

The tricky thing when selling is that you think you can sell on the right price or on value, but that´s not true at all. All people buy on value, the perceived value. However, if your offer s equal your competitors then the price will be the only discriminator but still the customer or client buy on value. If you can differentiate yourself then it is possible to adjust the price to a level close to the value for the buyer. But what is value? Last year I made a model defining value and at the core it is the difference between benefit and sacrifice for getting the benefit, the value might be of functional use, or symbolic use, an experience or strictly monetary. However, there are also different receivers of value, the market, the own organization and the shareholders of the company.  In my next blog post I will post the complete model linking the receivers to value and how value is created.

About Magnus Penker :

Director-level consultant defines corporate strategy, sets direction, executes growth and turnaround business plans. Read more at http://www.linkedin.com/in/magnuspenker

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