Value is in the eye of the buyer

Value is in the eye of the buyerSeth Godin has many fans. Many of those fans would agree that he is popular because he knows how to self promote. You'll get no argument from me there, in my opinion, he is the most successful self-promoter on the Internet. But, for me, Seth is most successful in identifying and debunking the little lies we surround ourselves with in the business world.

While it's not usually my style, I just can't help but reproduce his blog post entitled "No such thing as price pressure," because it cuts straight to the heart of the problem we are having with Dó Here's what Seth has to say about commodity pricing of your products:

"Your sales force and your customers may scream that you need to lower your price.

It's not true.

You need to increase your value. If people don't want to pay, it's because you're not delivering enough value for the money you're charging.

You're not selling a commodity unless you want to."
I think, the crucial point here is the "perception" of value. Especially when the value you are offering is intangible, or worse than intangible, technological. For when it comes to technology, nothing becomes more difficult to perceive for your customer than something they fundamentally don't understand or perceive as a necessary evil, like anything related to computers (unfortunately here in Puerto Rico it's almost always all of the above).

Flickr Creative Commons Contributor: jurvetson