Why Compete on Value vs Price?

The constant struggle for dominion between value and price in the realm of business has left many companies in a bit of dilemma.

What should we focus on?

They may ask, do we allow value to lead our products or do we attach a price that will yield profit for the company? Some of these questions run through companies as such; pet companies linger on what approach to follow. It has been proven that some people do not care about the price of a product as far as it adds tremendous value to their lives, some don’t mind the price since the product makes them stand out. People are willing to pay for your product once they find the significant value the product gives to them. There are also people that don’t mind the value but go for the product with the cheapest price. Life is all about choices and so is business.

However, instead of competing for what approach to be adopted, companies should focus more on the customers. Focusing more on customers’ needs will alleviate the stress of thinking about what method to follow. It is better to give the customer an experience than focusing on the price or the value, once a product thoroughly satisfies a customer, they will go to whatever length to get it, attaching a significant value for that product. So, why compete on value vs price when you can get both at the same time by selling an experience to the customer?

The first step in meeting your customers’ needs is by identifying your target market. Firstly, know the people that need your pet product. Focus on them and find a way to satisfy their needs. It is important to know who your product is for and how you can make your product more appealing than the last one they used.

Secondly, let your product stand out in the market, whatever pet product your company is involved in it should properly meet the needs of the customers without any complaints. People will be able to vouch for your product when it is good. So no matter the price, you still make sales because of its quality. Improve on the quality of the product from time to time to satisfy the fluctuating needs of the customers. The focus of your pet company should be how this product can suit the needs of the customers, what ways can you make owning pets a lot easier? These are mode pertinent questions than the tussle for value over price or vice versa.

Finally, once your product solves a particular problem, the people won’t mind the price or the value you have attached to it. To them it becomes a privilege to have access to the product that helps their pets. See that your product alleviates problems then attaching value or price will not be an issue. It will also be necessary to conduct research on the price of similar products around, the fact that people need your product doesn’t mean they won’t find an alternative. Look at the prices of similar products and carefully attach your own price, be confident of your price knowing fully well your products worth the price tag placed on it.