The term “value” is one of the most over-used and misunderstood terms in business today.

Why? Firstly, value (together with the linked discipline of "pricing") is a hugely under-researched subject. Secondly, value means different things to different people. And thirdly, it is often very difficult to define and quantify.

However, one thing is certain...customers buy it! We all do! Moreover, smart customers actively search it out weighing up the relevant pros and cons of each “proposition” in order to judge “best value” - sometimes intuitively, sometimes more scientifically.

Of course, it doesn’t necessarily mean “best value” equates to cheapest price. Value can involve little or lots of money. What is important, is the customers’ perception of the overall utility of the product/ service based on what is received and what is given (i.e. not just at pre-purchase but right through to post-promise delivery). In other words, value is a "trade-off". 

Customers’ calculation of this "value trade-off" will also be influenced by the quality and quantity of “information” provided by each supplier to communicate each “value proposition”.

To be successful your value proposition must be differentiated, compelling and clearly communicate best value.

To find out how to build best value click here.