Your product isn't made of gold, So, why does it cost so much?
“Your product isn’t made of gold, So, why does it cost so much?”
Is your product really worth the price? Do you often get asked this question because customers balk at prices, comparing your products to competitors' cheaper alternatives?
The statement is often like
"𝘞𝘩𝘺 𝘴𝘩𝘰𝘶𝘭𝘥 𝘸𝘦 𝘱𝘢𝘺 𝘮𝘰𝘳𝘦 𝘧𝘰𝘳 𝘺𝘰𝘶𝘳 𝘱𝘳𝘰𝘥𝘶𝘤𝘵 𝘸𝘩𝘦𝘯 𝘵𝘩𝘦 𝘤𝘰𝘮𝘱𝘦𝘵𝘪𝘵𝘪𝘰𝘯 𝘰𝘧𝘧𝘦𝘳𝘴 𝘵𝘩𝘦 𝘴𝘢𝘮𝘦 𝘥𝘦𝘴𝘪𝘨𝘯, 𝘢𝘯𝘥 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘢𝘵 𝘵𝘩𝘦 𝘩𝘢𝘭𝘧 𝘵𝘩𝘦 𝘱𝘳𝘪𝘤𝘦?"
Well I'd say "𝗟𝗼𝗼𝗸 𝗮𝘁 𝘃𝗮𝗹𝘂𝗲 𝗯𝗲𝘆𝗼𝗻𝗱 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗲 𝘁𝗮𝗴"
Whenever I hear this, I always pivot discussing value. Here's the reality, there are two types of customers. Some willing to pay premium for added value, while others focus solely on the initial cost. But what if I told you that the higher-priced product could actually saves you money in the long run?
𝗧𝗵𝗲 𝗧𝘄𝗼 𝗘𝗻𝗱𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝗽𝗲𝗰𝘁𝗿𝘂𝗺
Lets place our products on the spectrum,
🅰 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗔 sits on one end. Costs half the price of product B, easy to repair, easily replaceable with a shorter lifespan
🅱 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗕 sits on the other end. Costs more upfront, designed to last longer, less repairable, but significantly more durable and reliable.
At first glance, product A seems like the obvious choice, right? It's cheaper and easy to fix. but what if we look deeper?
Consider these factors,
🏷 𝗜𝗻𝗶𝘁𝗶𝗮𝗹 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗖𝗼𝘀𝘁
🛠 𝗠𝗮𝗶𝗻𝘁𝗲𝗻𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗥𝗲𝗽𝗮𝗶𝗿 𝗖𝗼𝘀𝘁𝘀
⌛𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗗𝗼𝘄𝗻𝘁𝗶𝗺𝗲
♻ 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗟𝗶𝗳𝗲𝘀𝗽𝗮𝗻
When you factor in these elements, the total cost of ownership for product B can be half of the product A. why? Because while product A requires frequent repairs and replacements, Product B's durability and reliability mean fewer interruptions and lower long-term costs.
🔔 𝗗𝗼𝗻'𝘁 𝗳𝗼𝗿𝗴𝗲𝘁 𝘁𝗵𝗲 𝗲𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁𝗮𝗹 𝗶𝗺𝗽𝗮𝗰𝘁!
There's another crucial aspect often overlooked. Environmental Sustainability. Constantly repairing and replacing parts for product A leads to more waste and higher resource consumption. Product B, with its longer lifespan and fewer replacements, is greener choice.
Therefore,
💰 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗧𝗼𝘁𝗮𝗹 𝗖𝗼𝘀𝘁 𝗼𝗳 𝗢𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽: Consider all factors, not just the initial costs
🏋♀️ 𝗩𝗮𝗹𝘂𝗲 𝗗𝘂𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗥𝗲𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆: Fewer repairs mean less downtime and more savings
🍀 𝗧𝗵𝗶𝗻𝗸 𝗚𝗿𝗲𝗲𝗻: Choose products that are environmentally sustainable
🕊 𝗣𝗲𝗮𝗰𝗲 𝗼𝗳 𝗠𝗶𝗻𝗱: Choose the products and services that offers you peace of mind
Do you have any examples of product A and B?
Which product would you select, or offer your customers? How do you perceive the value versus cost debate in your position?
Share your thoughts in the comment below.
#sales #sustainability #productmarketing #customervalue #valuecreation #purchasecost #budget #pricing