When you operate in the stock market, someone buys a stock at a given price and someone sells at the same price. For the seller it seems like a a good value to sell at that price, because she thinks it may not appreciate in value. On the other hand the buyer thinks that the stock is undervalued at the given price and has a possibility for the price to further increase. However both can go wrong in their estimates.
Unlike a product which has well defined boundaries, a service could be more fluid in nature. Which means that the same service can mean different things to different people and as the seller its your responsibility to bring out the value of a service.
The value will only come out if you know how the service will impact the user. If you can help me improve my revenue 10 times because of your service then, I may be willing to pay you a much higher amount, then if I can’t make out the value you can add.
Like in the stock market the value is what the buyer thinks and willing to pay. But unlike the stock market, here the seller has to be able to bring out the value.
You can fly from Toronto to Delhi in about $1000/- in economy, sitting for 15 hours , packed with 200 people and then sleep for the next 24 hours after you land, because you are exhausted.
Or you could spend 5-7 times as much in first class and travel sleeping and rested , to get on with business immediately after you land.
It’s the same aircraft, that is carrying the 200 people also, nothing different. But if by not being able to work in those of 24 hours is going to result in me losing more than $50000/-, then I will travel first class. For me there’s a value of $50000/- which I can generate by spending $7000/-. That’s what airlines sell – Cash at discount and I value it.
But its your responsibility to identify the right audience who will value what you sell. This is critical.
Till next time then.