Price vs. Value Strategy

Dropping price is that bad habit all sales people fall into from time to time as a way to sell their products and close a deal. Dropping price is a shortcut to building value and in no ways enhances the value of your proposition. Ask yourself, when you drop your price 10%, does it make your product more valuable or just less expensive? When you drop price does it better resolve whatever problems your product or service solves for your customer? A client recently asked me to drop the price of my product $300 and while I am in a position to do so I asked myself these questions and rather than unnecessarily discounting my price I took the time to offer more value and solve the real issues.

Don Draper’s Answer to the Ultimate Marketing Question of All

Posted by Patrick Clouden

I watched a couple seasons of Mad Men, and here is, by far, my favorite scene:

Captivating, touching, and insightful. You can’t get help but get a little choked up.

There’s a marketing lesson in it, too. It strikes at the most important marketing question of all…

Why do people buy stuff?

What simple statement explains why things are valuable enough for us to trade our precious money?

We’ve probably all heard the saying that people buy based on emotion, not logic. There’s much truth in this. No matter how coldly logical and practical a purchase may seem, there’s always a subtle, emotional aspect (why did you choose that loaf of bread or brand of light bulb over another?). But there’s more.