Updated: Aug 4, 2020
“You get paid for bringing value to the market place, if you’re not very valuable, you don’t make much money,” Peter Voogd. In adding value to the marketplace your product or service must make a potential customer’s life better in some real or perceived way. When I speak in terms of a “real” value, I’m referring to tangibility. For example, if your business is focused on tax preparation of which you save your clients money then the client is physically able to see the decrease in their tax liability and an increase in their tax return funds. On the other hand, if you are a motivational speaker, then your uplifting message will create value to your audience by providing them wisdom, inspiration and hope, all of which are intangible; the amount of the value given also depends on the each audience member’s perception.
It is important to note the term of perceived value which means the worth that a product or service has in the mind of the customer. Perceived value is subjective in nature, it is influenced by an individual’s personal values, situation & beliefs. You may have a stellar product but if you are trying to sell to a customer that has little to no perceived value for your product then they will not make the purchase. “People vote with their dollars,” Melanie Duncan. The customer’s perceived value strongly affects the price that they are willing to pay for your product or service. One way to increase perceived value of your goods, is to ramp up the presentation or the packaging of your products. If a customer can see that you are meticulous in the fine details in the presentation your products or if the packaging is superb, they will take notice.
Take note that, the greater your goods are perceived as valuable AND the more people that find it valuable, this will have huge influence on the success of your business. It is our responsibility, as entrepreneurs, to have a basic understanding of what people want.
According to Harvard Business School professors, Paul Lawrence, Nitlin Nohris & renowned author Josh Kaufman, all human beings have five Core Human Drives that have an insurmountable influence over our decisions & actions:
The drive to bond covers our humanly need to feel valued and loved through building professional, romantic, or platonic relationships. Linkedin and Facebook fulfill these drivers in us as they both connect people and aid in the building of relationships.
The drive to acquire focuses on our need to obtain physical products as well as intangible qualities like power & influence. Why do people spend $2,000 on a Gucci purse? Purchasing Gucci gives the perception of a wealthy status, obtaining that perceived status, drives the need to acquire Gucci.
The drive to learn stems from our desire to acquire knowledge. There is a reason why “How To,” videos dominate on YouTube & google searches. We thirst for knowledge and love books, training programs & gurus that satisfy that thirst in us.
The drive to defend gears towards our need of protection; protection of ourselves, loved ones and our property. ADT security systems, anti-virus software and car alarms satisfy this driver.
Any product or company that delivers entertainment, emotional experiences, and sensory pleasures aid in nourishing the drive to feel. Movies, music and restaurants all play on our needs to feel.
In part II we will discuss how you, personally, can
become more valuable in the marketplace and to your business.
Create a business journal. In that journal, relate your product or service to 1 or more of the Core Human Drives your product relates to. If your product only relates to 1 driver, see how you can expand the value of your product to relate to 1 additional driver.
Author: Sadé Banks , MBA
About: Sadé is a Business Building Expert who equips Kingdom Entrepreneurs to Start, Build, and Grow bankable and sustainable businesses.