Have you ever wondered why customers say they buy your products based on price—and then in the end, they also stop buying because of price?

What’s that phenomenon all about?

In a nutshell, the answer lies in the value received:
• for the price paid
• relative to the competition or to alternative products

How is value defined? Well, that’s a good question. Straight from the dictionary, Merriam-Webster defines it, among other ways that aren’t relevant, as: “a fair return or equivalent in goods, services, or money for something exchanged.”

My answer to how value is defined: It’s defined however the customer wants to define it. For customers it typically has two components: quality relative to price or benefits relative to costs; ultimately, customers choose the option with the best cost-benefit ratio.

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