Title: The Price Of Everything But The Value Of Nothing | KEXINO
Headings: The Price Of Everything, The Value Of Nothing.
The Price Of Everything, The Value Of Nothing.
Price is not the same as value
Price is what you pay. Value is what you get.
Commodity Pricing Wrongly Equates “Value” With “Price”
About the Author
Gee Ranasinha
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Content: They’ll sell daily staples, such as milk or bread, for less than it costs to buy them. The goal is to use such low pricing as an enticement to get more customers through the door. Once they’re in, the supermarket is gambling on these customers buying other stuff while they’re in the store. The profits made for the other items offsets the losses made on the bread and milk, evening-out the profit-per-customer statistics. Commodity Pricing Wrongly Equates “Value” With “Price”
Today, for any small business marketing their products or services, there’s no future in selling something perceived by customers as a commodity. That space has been monopolized by the giant brands. You’re extremely unlikely to win going up against Coca-Cola or Pepsi with your own cola drink, for example, assuming you plan to compete with them head-to-head. In order to prevent your business value from being commoditized, it’s essential to position your product or service in a way that creates merchantable value in the minds of your audience. Enough value that they’ll pay good money for what you’re selling, even if they can buy something similar from somewhere else. Perhaps your cola drink is manufactured locally, your bottling plant is powered by solar energy, or 10% of your profits go to a social cause.