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  • Bob Burg

“Master the contents of Endless Referrals and you will practically GUARANTEE your future success.”

~ Tom Hopkins, Author, Master the Art of Selling

Defining Value: Different From Price…And Why That’s Important

August 12th, 2011 by Bob Burg

The term is used so often some view it as little more than a buzzword. Yet, by it’s very nature, “Value” indeed has everything to do with the sales process and whether one will trade their money in exchange for a desired product or service. Unfortunately, it is seldom defined and, because of this, often misunderstood.

Truly understanding the concept of value — especially in relation to price — and being able to communicate this effectively to a potential buyer, allows for a healthy profit margin while adding significantly to the other person’s life and/or business…and without having to discount.

In this video, we’ll see why this is, and the key shift in focus that begins the value communication process.

At the end of the video we looked at five “Elements of Value”:  “Excellence, Consistency, Attention, Empathy and Appreciation.” While we’ll explore these individually in future posts, how have you applied any or all of them in order to add value to those with whom you do business?

16 Responses to “Defining Value: Different From Price…And Why That’s Important”
  1. Ryan Biddulph said at 11:18 am on

    Hi Bob,

    Consistency resonates with me Bob.

    I’ve seen how relaying a consistent message makes the message grow on people. Like a TV commercial or radio jingle, people seem to sing along after a while, finding value in a message which becomes familiar.

    Thanks for sharing.

    RB

  2. Amos Johnson said at 1:09 pm on

    Hi Bob, I love the concept of giving more in use value, than you take in money value. This video does a great job of explaining how to do that.

  3. Bob Burg said at 1:29 pm on

    Ryan, thank you. That’s something that resonates with me, as well. I definitely look for that in people with whom I do business. Thank you for your thought!

  4. Bob Burg said at 1:30 pm on

    Amos, thank you. I first learned that concept from the book, “The Science of Getting Rich” by Wallace D. Wattles, written in 1910. Thank you for your feedback!

  5. Amy Wells said at 5:36 pm on

    I love the five essential. (and my favorite number is 5) In the video you asked, “How can we communicate our value to others?” I first had to know my value in order to stop giving away my God given “thunder.” As an apple tree doesn’t have to defend itself, because it just is. To communicate value, just BE valuable. (like you are my Bob)

  6. Bob Burg said at 6:24 pm on

    And, once you realized your value, my friend, you made amazing strides. I utilize your awesome story as an example from stage quite often!!

  7. Amy Wells said at 9:00 pm on

    :-)

  8. Janice said at 11:08 pm on

    Someone once told me “When the value exceeds the price by at least one penny” –a sale is possible

  9. Bob Burg said at 7:56 am on

    Very true, Janice! (Actually, so long as it’s at least even, the sale is possible, but the greater the perceived value as compared to the price, the greater the chances that a sale will take place). Thank you for sharing!

  10. [...] My Burgess Meredith, Twilight Zone Moment Defining Value: Different From Price…And Why That’s Important [...]

  11. Seth Rosario said at 8:26 am on

    For me the major shift came by focusing on the other person instead of what my agenda for them is. I’ve been seeing this work more and more in my line of work.
    By just being genuinely curious, interested in them, and looking for a way to put them ahead, I’ve made more friends and ‘prospects’ in the last few months than all of last year!
    Looking forward to the new book! :)

  12. Bob Burg said at 9:51 am on

    Terrific, Seth. That shift in focus is what it’s all about, and what really makes all the difference! Thank you for sharing!

  13. Snigdha Krishna said at 10:21 am on

    Bob,

    This is an awesome follow up from your last post on “value focus” Vs “price focus”. Five elements of value are great things to remember during the sales process. Thank you for sharing.

  14. Bob Burg said at 11:00 am on

    Thank you, Snigdha. I greatly appreciate your kind feedback. Thank you! :-)

  15. Valuable post, my friend! In regards to the Elements of Value, I always emphasize Excellence and Consistency in business. Showing pride in my work and constantly delivering superior products and services are my trademark. It builds trust with clients and credibility in branding. Many of the individuals (including yourself) and companies I admire use those similar elements. Thanks again and keep up the terrific work!

  16. […] you’ve heard me explain the difference between price and value you know that BOTH PARTIES are actually RECEIVING MORE than […]

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