When did paying more for something become the definition of value?

It surprises me why so many people put the value of a service or product based on the price and not what the return is.

I was at a presentation this morning and listened to the audience provide feedback to the presenter on the value of what was being offered.

The presenter shared his expertise and what he does for clients. The group listened and without any hesitation said, “You should be charging more.” The best part was, the presenter wasn’t soliciting for their opinion of the investment. People just felt compelled to say the fee was not enough.

Now why am I addressing this?

The rationale of their comment to increase the price is what got my attention. In short – they believed that prospects of this presenter would perceive his work to be of less value.  The prospect should pay more.

The presenter, a certified trained professional, has the experience and know how to help a business avoid unwarranted costs of $300,000.  But because he only wants to charge a nominal fee, it is perceived as not valuable.

So, when did paying more for something become the way in which we look at value?

I have been fortunate enough to travel to many countries and one of the common elements of business practice I have seen, is the art and science of a deal. In fact my friend, attorney and author Jim Thomas shared with me how negotiating is a way of life. Negotiating is not about raising the price, but lowering it.

If you see something of interest but the price is lower than you think it should – that does not mean it is inferior quality.

Ask yourself why do you look at something that is affordable or lower in cost as something that is less valuable than something that is more expensive?

Most people answer with:

1.  If it is so low – it is too good to be true.
2.  There must be a catch?
3.  Can’t be any good

What about you? Do you think like that?

I am sure you do. And you know why you do? Because you have been groomed to think that way. Media, advertising, movies, friends, or people you look up to – portray certain lifestyles and you automatically think: I respect that person and admire them so they know value.

Your beliefs have been jaded and your values tarnished. Want to know why the cost of living keeps rising? Look at what you buy? And more importantly – what are your justifications for that purchase?

So, what can you do about it?

When you are ready to make a purchase, for instance in your business. And you want to engage the services of someone, after learning their fees or cost are lower than you expected, ask yourself, “Why would I want to pay a higher amount for that service?”

I would venture to guess the following:  If it costs more – it must be better.

Here are examples of what the contrary:

– Want to learn great marketing – watch and listen to Gary V… Free! This is someone who built multi million dollar businesses.

– Want to be healthy – watch and listen to Sadhguru… Free! This is a man who offers healing around the world, spoken at the UN (first Yogi to do that) and has millions of followers.

– Want to get a project done or some assistance on a project – go to Fiverr.com. These are people offering services to help businesses around the world.

There are so many overpriced products and services that will not deliver on the expectations or promises. So next time you have the need to invest – look at what it is driving your decision.

Stop the insanity of – if it costs more it must be better!

Ask – what is the value?

 

Kevin Huhn