Author: animeshjmathur

Price versus value, cost versus value

differentiation, Marketing, Positioning, Product Management, Value, value proposition

This is a pertinent question in marketing or sales. I keep getting the statement – the price is too high – compared to what?

Does anyone going to a Ritz Carlton or a Four Season hotel say the price of the room is too high. Does anyone who is buying a Roll Royce or Lamborghini ever say the price is too high. For a lot of people the Mona Lisa is just another painting, but for a lot of others it could have huge value hence its kept under so much security unlike another painting in the Louvre museum.

I think its the marketing and sales teams’ responsibility to position the offering that they have, correctly. This does not mean that there won’t be competitive situations. Especially in technology marketing where the entry barriers are very low, the competition heats up very fast.

Even in technology companies though you will see that there are disruptors who come in and take away a large share of the market suddenly but companies like IBM , Oracle and others who continue working on giving more value to their customers and charging a distinct price differential.

The key point that needs to come out is Value. Like beauty lies in the eyes of the beholder, value is specific to the buyer. Unlike Gold which has a fixed value defined, most other things like houses, shares etc. all have relative value. For one person who is selling a share the value is less than the price he is selling it at, while the buyer is seeing more value than the price she is paying for it, hence she is buying it.

Similarly if the customer see the value that you offer for your product same as what someone else offers, then the only differential is price that the customer can work on.

One of the best ways to reduce the cost/price value argument is to educate the customer so she sees you as the authority on the subject. I have shared multiple posts on how education has eliminated the price discussion from the buyer’s mind altogether.

Other ways off course include things like the ecosystem – if you are part of a proprietary ecosystem than you have very little competition – IBM Mainframes , Apple and others have very strong ecosystems and the discussion on just price does not take place.

The key for any marketing or product management person is simple they have to be able to build the value of the product or service in the minds of the customer preferably through education. For the sales person its important to identify and understand the value that the customer is looking for before easing time on a deal.

As I said earlier “VALUE” lies in the mind of the person buying.

Till next time then.

Carpe Diem!!!

Vaccination

Health, vaccination

My wife and I got my second dose of vaccination done today. I am feeling quite tired , maybe because of the impact of the vaccine, so this post will be small.

The COVID-19 virus has changed the way all of us live. I am not sure when we will actually be able to move around freely without a mask. Everyday we hear of new mutations of this virus.

Having said that my feeling is that if enough build resistance to the virus, it’s ability to survive even after mutating will keep falling dramatically.

So while the whole word is talking about the 3rd wave, if we can concentrate on ensuring maximum vaccination, we might be able to atleast bring things in control.

Not sure if we will ever get to take long distance flights without being masked. Not sure if we can enjoy popcorn in a theater again while watching a movie.

If most of us can get ourselves vaccinated,

I do understand there are some who are oppose vaccination quite vehemently because they are illetrate ,as in India, or educated people who have different ideologies. We have to learn to handle both and move forward so that the virus does not get a chance to further expand.

Till next time then.

Carpe Diem!!!

Gap and Gain – Part 2

Habits, Happiness, mindset, self esteem

Continuing on this concept that I started of on yesterday, Dan Sullivan has a very nice method which I have gathered from his books and videos.

He talks of looking back 25 years. Assuming you are more than 40 years of age. Then checking out where you were 25 years back and where you are today. Chances are that you have come a long way in terms of your earnings, your experience.

Based on that he says that in the short term there could have been challenging times ever so often, but in the long term you would have generally made it with a lot of achievements to be proud of.

Once you remember those moments, then it becomes easier to come out of a “down” state and look at the future with hope.

I have shared multiple tactics over the years when I feel. One of them is to see how far I have come from 25 years back. It changes my complete mindset and makes me happy.

When I look at things that way, I do notice that I have actually achieved quite a bit for myself. Comparing the 25 year younger me with the present me actually makes me eel quite happy.

Try this for yourself whenever you’re in the self pity mode.

Till next time then.

Carpe Diem!!!

Gap versus Gain

Habits, Happiness, life

This is a term I heard from first Dan Sullivan,  and similar  terms then from Vishen Lakhani and Benjamin Hardy.

All of us want to grow. My team members and I all have a lot of aspirations for the future. The challenge that a lot of them face because of which they don’t enjoy the journey is that they are always looking at the horizon.

The horizon is such a place that you will never reach. It’s a moving target. It’s unachievable.  That’s what gets us unhappy,  depressed etc.

When you drive a car on the road,  while your eyes are focused in the front, from time to time you look at the rear view mirrors to ensure that no one is coming too close to hit. When you look in the rear view mirror you also realize how far you have come.  So while the destination is ahead and you are driving towards it,  you also get to know how far you have come from where you were.

That’s the important thing that I learned from this term Gap versus Gain. While its important to be aware of how much is left to do, you can also from time to time look back and see how far you have come from where you started. That will cause you to feel happy in the progress you made from where you started.

Its just a perspective issue but it can make you happy and more focused for your future with renewed energy versus being anxious and depressed.

Till next time then, count your gains and make your journey worth remembering.

Carpe Diem!!!