Kevin D Thompson – PRICES - Value Components

PRICES - Value Components

PRICES - Value Components

What is this?

PRICES is an acronym that includes most of the basic elements that represent value to a consumer.

Why is this important?

PRICES gives you an easy way to organize and keep handy the primary value components that need to outweigh the investment the consumer will have to pay - the price for the product or service.

PRICES is representative of these primary values people seek to obtain in their purchase:

 

Productivity

Reliability

Image Quality

Capabilities

Ease of Use

Safety

 

    Productivity - in most cases, the consumer is looking to go faster, farther, quicker or something along these lines with the new product or service they are considering.

    Reliability - often, the unreliability of their current product or service is what drives the consumer into the market. In nearly all cases the consumer desires a product or service that is more reliable than what they are currently using or have used at some point in the past.

    Image Quality - most consumers are concerned with the way they are seen by others and the degree to which a product or service enhances their image is seen as a value. Also, the way a product looks to them is usually important.

    Capabilities - a greater set of capabilities with a new product or service is usually seen as a value. What things will this new product or service do for me that will save me time, effort or money by not having someone or something else have to do them anymore?

    Ease of Use - no new product or service will deliver value without being easy enough for the consumer to use. Products and services that are hard to use are often replaced or neglected.

    Safety - enhancements in the safety of products and services is often a high-ranking value component.

 

When you keep the focus of someone on the value components of your product, service or idea - they are much more likely to develop mental ownership of it. If your product, service or idea causes them to give up any of these value components you will likely be hard-pressed to make a compelling emotional or logical case for it. All of these value components represent aspects of a product or service which someone expects to require a monetary investment.

When the PRICES a consumer believes he will gain exceeds the price he is able and willing to pay, a sale will usually result.