Value is about not just price, but quality. This busy market obviously understands.
Value is about not just price, but quality. This busy market obviously understands.
If you want to market on price, look at words like “affordable” and “value.” “Cheap” can be deadly.

As a service provider, I did lead on price for a number of years. Back in the days when much of my business was resume writing, I used a simple half-inch in-column ad in the Yellow Pages (remember them?) with the slogan “Affordable professional resumes while you wait.” The year they changed it without permission to “Affordable professional resumes while U wait,” I successfully argued that proper grammar was a key selling point in my line of work and they killed it—and got the cost of the whole year’s ad refunded. I turned out to be wrong; that ad brought me plenty of clients. But I personally would not patronize a writing service whose face to the world was ungrammatical.

Those ads ran in the 1980s and 1990s, and resume writing is only a tiny fraction of my current business. These days, I stress value, not price–for all the services I offer. Some are still quite inexpensive, like writing a press release or book cover—or, for that matter, the occasional resume I still write. Others, including strategic consulting on green and social change profitability as well as book publishing consulting, can be fairly pricy.

I would have moved away from marketing on low price anyway, as my business matured. But if I hadn’t, my business would have dried up. The market is very different now. Nobody is a prisoner of their own geography any more. I can’t compete on price with some clown on a bottom-feeding service bidding site who throws an article into a word-blender and spits out crap for $5 a shot. But I sure can compete on value and quality.

As a consumer, I’m price-sensitive on some items, but quality will trump price, and so will politics. Yesterday, I spent $40 or $50 at the farmers market. I could have bought the (theoretically) same items at a supermarket for half the price, but not the organic/local/fresh choices I purchased. But I also stopped at the local independent discount store and picked up some just-past-date polenta for a buck. I cooked it last night and it was fine. I have a less gourmet one in my fridge that I paid $3 for at a different store and it doesn’t expire until November, which means the one I ate tonight was probably packed last summer. But that’s OK, it was fine.

I learned all the way back in the 1980s that price and value were not necessarily the same. After a couple of bad experiences with cheap electronics, I started buying better quality components for my stereo, better telephones, and so forth—and being much happier with my purchases. I learned that I could get a good deal through a remainder catalog, and that a $100 item with an original list price of $300 was generally going to be a much better value than a $75 item that had never sold for more than $100. And when I bought my first computer, I went with the expensive but easy-to-use Macintosh and was very happy I did.

I will shop at that local discount store, but I won’t shop at that very famous low-price big box store beginning with a W. While I recognize that they are among the best in the industry on sustainability (something very important to me), I’m also painfully aware of how much I dislike their store siting and closing policies, their community relations, labor practices, supplier practices, and a bunch of other stuff. Plus, I’ve heard that the quality is often less than stellar. I give them kudos in my speeches for, among other things, developing a massive market for organic foods among people who have never been inside a Whole Foods. But I personally choose not to shop there.

But I’m perfectly happy to drive inexpensive, functional cars. Right now, we have a 2004 Mazda, bought new for $17K, and a 2005 Toyota Corolla, bought at six years old but with only 26,000 miles on it, for $10K. I expect both to last several more years. When we bought the Corolla, one of our other options was a used Prius with 99,000 miles, for $12K. The Corolla seemed like a MUCH better deal. It wasn’t the lower price so much as having only 1/4 as many miles.

In short, as a consumer, I’ll definitely factor in price, but it won’t be the only factor. How about you? As a business owner and as a consumer, how does price factor into your decisions.

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