Is value a lost concept?
The key to ensuring economic value in a business deal is to provide something that the buyer feels is worth paying for. This sounds obvious enough, but it is far from simple. Defining value is a challenging prospect, as it is so subjective.
There are many different forms of value and many different ways one could see them. Among these are business value, social value, psychological value, and functional value, to name just a few. While some values are measurable with definitive stats, such as the economics and implications on society, others are intangible, such as a person’s emotional attachment to particular services or products and whether they have provided a satisfactory solution to the buyer’s problem.
All of these are valid forms of value that, if added to a product or service, can make a purchase more desirable in the buyer’s mind. The challenge is getting the seller to meet the buyer’s value needs. When this fails, sales fail to occur, or when they do, the buyer is left dissatisfied, which can disrupt the possibility of future sales taking place.
How Value Systems Influence Business
What you might perceive as valuable, another business might not, and vice versa. Therefore, the key to getting deals off the ground is to make sure that you’re both speaking the same language.
If your customer is seeking functional value (such as a car that gets from point A to B) but you’re trying to sell your product based on social value (such as a car that is low on emissions and therefore protects the environment), you might be in for a tough time closing a deal.
Likewise, if your customer is seeking a simple, get-the-job-done economical service but you’re approaching the sell based on psychological value with matching pricing strategies, your business could be perceived as manipulative.
Depending on the customer, their perception of what is valuable might be different from yours, so it is important to recognise and respect that.
How the Seller and Buyer Can Overcome Value Differences
Overcoming value differences comes down to better communication between parties as well as better market research on the part of the seller. You need to understand what your customers want before you can give it to them. If you’re the buyer, then it is important that you make it known to sellers what exactly is valuable to you so that they can try to give it to you.
It is important to note that different value propositions are not always mutually exclusive. As in the example of the car, a low-emissions vehicle can still provide the value of transportation from A to B. However, the key to making the sale and ensuring customer satisfaction is to emphasise the right aspects in not only the marketing but also in the execution.
How We Ensure Value
At KVR Training, we operate with a structured network consisting of facilitators, assessors, and moderators who collaborate to ensure successful learnerships. Our focus is on providing both credit and non-credit-bearing short courses that deliver value to our clients.
We prioritise their needs, ensuring the relevance of our offerings and making our services financially accessible. We highly regard our students and strive to provide them with top-notch support through our qualified facilitators. This commitment ultimately boosts the success rate of our learnerships.
Finding true economic value is just around the corner. Whether you’re looking to add business value, social value, psychological value, or functional value, speak to one of our experts now to find out more about how we can help you transform your business today.
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