TALKING
‘‘ business
In a competitive market , the allure of a bargain can lead businesses and consumers to prioritise price above all else . But value is more than just what is on the price tag . Understanding this is key to sustainable success in business .
The truth is that people will pay a higher price for something if they understand that they are getting value in return . This value can come in many forms , whether it is the quality of the product they are buying , efficiency , better customer service , innovation or environmental impact .
Even in tough economic times , when customers are price sensitive , there are instances where they are willing to pay more for a product or service . But , to do this , they must understand why you are charging the price you do , and see the value that your business delivers in some of these key areas
Quality
This is probably the most obvious reason to pay more for something . It is most evident when you ’ re dealing with a physical product where the build quality , design and materials might make it easier to use or longerlasting . In the long run , a quality item will end up delivering better value because you might not have to replace or repair it as often . But what about when it comes to offering a service ?
A business choosing between two communications providers may compare costs and decide to go with the cheaper one based on the monthly fees alone .
But without having compared call quality and system features , it is hard to tell if they are getting real value .
A business doing a more thorough comparison may find that the more expensive system also comes with features that increase productivity , or offers extensive data and analytics that help drive business decisions . So while the offering itself is more expensive , there is real value in how it delivers .
Value is only significant when it is being used . So in the case of the phone system , if the company is not aware of the full array of features , and are not making use of real-time data and insights , then a higher price point is not delivering value .
Flexibility
Whether it is for a gym or a phone , people do not want to get locked into a long-term contract that they cannot
Warren Hawkins , Managing Director , Euphoria Telecom
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