Advisors: A deeper look at price vs. value

Rather than submit to price-cutting pressure from prospects and a general price-lowering trend as a result of the economic climate, instead increase the value (both real and understood) of your offering. In other words, sell on value; not on price.

This is one reason why referrals, introductions and word-of-mouth are so important. Because you meet new prospects as a result of borrowed influence; that of someone they know, like and trust, you are viewed in a different, more positive and — dare I say — value-based light.

A saying I heard many years ago rings very true to me: “A person will exchange their money for that which they feel is of equal or greater value than the money they are exchanging it for.” Naturally, the more value they perceive compared to the money they are paying, the more likely they are to make that exchange.

There are several other sayings I love regarding the trumping of value over price. Famed consultant Alan Weiss, author of “Million Dollar Consulting” says, “Money is never a resource issue…it is always a priority issue.” Art Sobczak, author of “Smart Calling,” cites one of his early mentors who told him, “There are no price objections; only value questions.”