Price vs. Value

Some notes and a message from @moechievous on price vs. value when selling a service/ product.

So this morning, I came across some tweets that link to some of Vusi’s videos I watched last week. These talks were about discussing price and value when selling your services. I’d post links to them. If you’re not familiar with Vusi, you’re really missing out. This man makes me feel like I know jack shit about business. So well-read and eloquent, he’s someone I look up to in this venture capital space. I learn so much from watching his videos. One of these day’s I’ll post up some of my notes from his talks. I’ve literally watched and made notes on about 20. Subscribe to his Youtube channel. Might be the best thing you do this year. But I digress—back to the morning. I saw some tweets by @mochievous. She also has a newsletter (subscribe here) The following text is all @mochievous words. 

“Talk value. Don’t talk price.”

People pay for value. That’s why different service providers provide the same service at different price points. 
Clients want value - sell value.

How do you do this practically? As usual, I have a hack for you.

1. Insight: always give your customers information they currently do not have. This is key because it immediately sets you apart, they trust you & can see your value

For instance someone comes to me to register a company in the US, I could tell them the tax implications of that.

See what I did there? They only came to be for registration but during our consultation, I’m asking them general questions & letting them know the tax implications of doing so. 
Now this is info they didn’t have so they immediately trust me more. I haven’t even discussed price

2. Empathy: let your customers know they you understand their problem. 
One phrase I always use in business development meetings is “I understand”

I listen to the client’s problem and then just keep responding with things like “I totally get that”, “I understand”.

This is important again because as the expert many are tempted to just start telling the client how much they know. Calm down, you aren’t the only expert in town. 
What a client needs to know is that the particular expert they are taking to understands their particular problem.

3. Simplify. Some service providers believe they have to make things complicated to justify price. I differ. I always joke about turning all my clients into lawyers.
People like simple. So when selling your service, let people know you’ll carry them along during the process.

This is so important cos it helps with what I call unconscious referrals. After a client works with me, they are now so knowledgable about the process, they are excited to talk about it.
“Wow, How did you know that?”
“My lawyer told me oh”
“Ah, please introduce me to that lawyer”

Over 80% of my work comes from referrals so you can see how important that last point is. 

I’m a service provider so this thread is for service providers. I guess some of it can also be applied to products. 

Now back to Ato talking. On this value vs price conversation, here are some of my points from watching Vusi’s talks:

• Never drop price. Always talk value 

• Over communicate value up front. OVER COMMUNICATE VALUE, OVER COMMUNICATE DIFFERENTIATION 

• Price is not a negotiation. Don’t talk price, talk value 

• Anytime you find yourself talking price, you’re not an entrepreneur anymore 

• Difference between talking price and value is perception

These are the links to Vusi’s Master classes. Please subscribe to his Youtube channel.

How to get a customer to buy, when they tell you they don’t have the authority to. (Link to video)

How to get the sales even if the customer says the product is too expensive (Link to video)

*New segment*

Article List—10 or so articles I’ve read in the past 24 hours or so

1. Today’s Quartz Obsession: Tramadol

2. The WeWork IPO

3. “Nigerian tech startups can become giants without serving other markets” — Kyane Kassiri, VC at LoftyInc

4. USA: a new investment agency to re-engage with Africa

5. Road to WEF Cape Town: How West African economies can foster inclusive growth in the 4IR

6. Norway invests in Nigerian food company

7. Hi, Alexa. How Do I Stop You From Listening In On Me?

8. Nigeria: New cabinet, old wine, cracked bottles

9. Africa’s youth: Getting beyond the stories of boom or gloom

10. All 84 startups from Y Combinator’s Demo Day 1

11. Here are the 82 startups from day 2 of Y Combinator’s S19 Demo Days

12. The Museum of Future Experiences offers a spooky, surreal take on VR

13. The fight for seed

Podcast Recs— A podcast channel listened to this morning.

The Pitch

Books—What I’ve been reading.

Two days ago I finished Aluta recommended by one of my friends. Very good and easy read that discusses student life and participation in politics during the days of coup d’états in Ghana. 

Still reading Merchants of Debt by George Anders that outlines the life of KKR—one of the biggest PE players. These people were literally printing money with this LBO industry.

Also, thanks to everyone who subscribed when I posted on Twitter yesterday and shout outs to the new subscribers. s/o Kenneth for the review on Twitter too. Let me know how I can improve with content.

Dont forget: “Until the lion learns to write, every story will glorify the hunter.”