Measuring value in the eyes of your customers is the simplest way to make money in your small business.
Every small business owner wants to attract more customers, make more sales, and generate more profit yet few small businesses are maximizing their potential. The simplest way to help make money in business is to add value in the eyes of your customer i.e. find out what problems your customers want solved, or what makes them feel good – and deliver it to them.
You might say… ‘I’m already doing that and I’m still not making the money I’d like to have’. So the question is… ‘Are you really’?
The first thing to understand is how is value measured. We measure value as follows:
Value = Benefit – Cost
Benefits answer the customer’s question, ‘What’s in it for me?’ They want to know… ‘What do I get, how will you solve my problem, how does it make me feel good, and how do you do it better than your competitor down the street?’ Once you answer this question and your customer has determined the value they will receive, they will then compare it to the cost to acquire that benefit. Your customers will see value and purchase your product or service if they feel their benefit is greater than their cost. If they do not, they will not purchase your product or service.
It’s important to note, you do not need to be the cheapest to create value – you need to offer more benefits.by