I think most of us are used to looking at the price of a product or service and using that information to make a purchase decision. Obviously the more complex the purchase the more data we need, but price is still usually the basis. The last time I bought a TV, I sorted my search criteria on the website by “price – low to high”. How many of us have done that?

But what other criteria did I use when I made that purchase decision?

I looked at the size and how it compared to the TV that had just broken, the features (smart TV, pixels, etc.), the brand name, and the availability. I think unless you are a TV connoisseur, that’s a pretty standard set of considerations.

But what does that have to do with price vs value? Well, if I only cared about the price, I would not have done all that other research. Personally, I have certain brand preferences based on experience, and I knew I wanted a smart TV after many years of not having it (don’t judge me for being behind the times – I bought my last TV right before smart TVs became affordable). Information on the pixels was interesting, but not a huge factor in my decision because my eyesight isn’t what it used to be anyway.

And that’s the key to value – knowing what your customer really wants relative to the cost.

Sometimes when companies are putting out an RFP, they know exactly what they want and only need you to tell them how little they can pay for it. If they are buying a batch of the newest iPhones and nothing else, value doesn’t easily come into the equation. However, if the organization can guarantee shipping faster or assistance setting the devices up, maybe that sways the decision in their favour. But only if the customer cares about those things. If, for example, they don’t actually need them in the next month then fast delivery may not be a big deal to them.

Back to my TV example. There’s a good chance that when I go into the store, the sales associate is going to try to sell me on a larger model, with more features and maybe higher definition. Those things are awesome. But if I have a budget and they don’t ask that first, then all their sales efforts are wasted. Not everyone cares about the latest technology – some of us just want to watch the newest episode of “Doctor Who” on a screen larger than a laptop. If I have a space that can only fit a 55” TV, a 60” TV has no value to me.

If you know your service or product isn’t the least expensive, but it’s because it includes something that will either solve another problem they have or make their lives easier in other ways, that helps show the value of the pitch. Whenever you are putting together a proposal, knowing the client, what they care about, their budget, and their known requirements will help you to determine what they value.