When we look at any business, it really is a transaction between the company and the customer. In this transaction there is an exchange of value and money (in most cases).
What is value?
Value is extremely difficult to quantify as a small encompassing figure. Value means different things to different people.
Some people value quality of product (looks good, lasts long, has brand, etc)
Some people value time (does the product save me time?)
Some people value ease of use (it just works without having to be a rocket scientist)
Some people value altogether something else (entertainment value, charitable value, etc)
In every one of the value mentioned above, you can go deeper and realise that by time, there is an infinite continuum and some might be satisfied with 1 min time saving, while others only value 1 hour or more saving as significant.
Before you start any business, its important to determine what the exact value you are providing to the consumer.
For some, a pair of Levi’s jeans is valuable because it has a brand heritage and it last for a really long time.
For others, a pair from H&M is valuable because it’s fashionable, wears well for a good 1 year, and at an affordable price.
For some, Mcdonalds is valuable because it fills me up fast, it taste good, convenient and affordable.
For others, a gourmet burger place is valuable because it’s delicious and has great ambience. It’s not that affordable and not convenient location wise.
You get the point.
So, the question begs to differ, what is you [product, company] value to the customer?
If you are selling the same as everyone else, then it would just be a combination of price and marketing budget that will trump.
If you are selling a differentiated product that is well suited for a segment of consumer, then you will be able to command a premium and you might even win more through “word-of-mouth”.
At this point, I like to thank you for reading. While this maybe just my view as I wade through my own business, I do hope it provides value to you, too.