{"id":1937,"date":"2013-02-06T17:57:18","date_gmt":"2013-02-06T17:57:18","guid":{"rendered":"http:\/\/intercom.com\/blog\/?p=1937"},"modified":"2020-07-30T13:04:03","modified_gmt":"2020-07-30T12:04:03","slug":"price-is-what-you-pay-value-is-what-you-get","status":"publish","type":"post","link":"https:\/\/www.intercom.com\/blog\/price-is-what-you-pay-value-is-what-you-get\/","title":{"rendered":"You pay the price, but you get value"},"content":{"rendered":"<p class=\"opening_paragraph\">Sometimes your customers know that you provide a feature they want, but for some reason, they don&#8217;t use it. Why does that happen?<\/p>\n<h2 id=\"its-a-value-problem\">It&#8217;s a value problem<\/h2>\n<p>You know you have a value proposition problem when you hear the following:<\/p>\n<ul>\n<li>I just haven&#8217;t gotten around to it yet.<\/li>\n<li>It&#8217;s pretty expensive.<\/li>\n<li>I will once I get the time.<\/li>\n<li>We can&#8217;t afford it yet.<\/li>\n<li>That&#8217;s not important for us right now.<\/li>\n<\/ul>\n<p>You&#8217;ve heard these before, right? They all mean the same thing: &#8220;<em>I don&#8217;t see the value<\/em>&#8220;. You see, cash isn&#8217;t the only thing businesses spend. They spend time and focus too.<\/p>\n<p>Using your product or feature has to be worth the time, focus, and money. Money is usually the least of the concerns. $49 per month doesn&#8217;t mean a whole lot to a business dropping $20K per month in salaries alone\u2014and that&#8217;s a very small business.<\/p>\n<p class=\"quote\">Money is usually the least of the concerns.<\/p>\n<p>Solving a value proposition problem <a href=\"https:\/\/www.intercom.com\/blog\/the-importance-of-an-effective-product-marketing-strategy\/\" target=\"_blank\" rel=\"noopener noreferrer\">requires strong positioning<\/a>. It comes down to how you sell your product, how you <a href=\"https:\/\/www.intercom.com\/blog\/product-thinking-behind-messenger-home\/\" target=\"_blank\" rel=\"noopener noreferrer\">frame your offering<\/a>. An Audi looks expensive at a car dealership but looks like a bargain at a yacht show. $29 a month is pricey for &#8220;5GB of file storage&#8221; but great value for &#8220;the certainty of keeping your family photos safe forever&#8221;.<\/p>\n<p>The toothpaste industry only really took off when they started selling &#8220;<em>beautiful teeth<\/em>&#8221; as opposed to &#8220;<em>prevention from gum disease<\/em>&#8220;. We all know flossing is a good idea, but we&#8217;ve yet to hear a similarly compelling pitch for it.<\/p>\n<h2 id=\"why-should-i-buy-your-product\">Why should I buy your product?<\/h2>\n<p><a href=\"https:\/\/www.intercom.com\/blog\/start-with-why-getting-your-story-right\/\" target=\"_blank\" rel=\"noopener noreferrer\">Understanding why<\/a> your customers buy your product is the key to positioning it properly. Is it &#8220;peace of mind for your most vital files&#8221;, &#8220;painless file-sharing for business&#8221;, or a &#8220;easy way to access your torrents&#8221;. All of these describe the exact same product, but they appeal to different people at different price points.<\/p>\n<p><strong>Real example:<\/strong> A friend was having no luck pitching a product as &#8220;<em>all your online files in one place<\/em>&#8220;. That sounded good but simply didn&#8217;t solve a problem people related to. She heard lots of answers like &#8220;This sounds great! I&#8217;ll give it a try in a couple of weeks&#8221;.<\/p>\n<p>After digging deeper, she found a real pain point that her potential customers experienced quite often. She re-framed the product as &#8220;<em>When your favourite app gets bought and shut down, we&#8217;ll have your back<\/em>&#8220;. That resonated with her market. Not a single line of code changed, but all of a sudden this product was a painkiller. And people started buying.<\/p>\n<p><strong>Key idea:<\/strong> Understand that it costs more than just money to use your product. So when you&#8217;re asking your users to do something, <a href=\"https:\/\/www.intercom.com\/blog\/podcasts\/a-great-product-starts-with-a-great-vision\/\" target=\"_blank\" rel=\"noopener noreferrer\">frame it in terms of their needs and desires<\/a>, not your features and bullet points.<\/p>\n<p>Tip: Customers who have bought your product recently will describe it far better than you can. I&#8217;ll give the last words to a man far smarter than any of us.<\/p>\n<div class=\"post_image_wrapper\"><img decoding=\"async\" src=\"https:\/\/intercom.com\/blog\/wp-content\/uploads\/2013\/02\/Drucker.png\" alt=\"=Peter Drucker quote: The customer rarely buys what the company thinks it sells him\" \/><\/div>\n<p><a href=\"https:\/\/www.intercom.com\/blog\/books\/marketing?utm_medium=book&amp;utm_source=marketing book&amp;utm_campaign=20180522-MarketingBookPriceValue&amp;utm_content=image-footer\"><img decoding=\"async\" class=\"small\" src=\"https:\/\/intercom.com\/blog\/wp-content\/uploads\/2018\/05\/Intercom-on-Marketing-print.png\" alt=\"Intercom on Marketing book\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sometimes your customers know that you provide a feature they want, but for some reason, they don&#8217;t use it. Why does that happen? It&#8217;s a value problem You know you have a value proposition problem when&hellip;<\/p>\n","protected":false},"author":5,"featured_media":1941,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"category":[5],"tags":[148,73,62,231],"coauthors":[348],"class_list":["post-1937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-product-and-design","tag-customers","tag-pricing","tag-product-management","tag-value"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>You pay the price, but you get value - The Intercom Blog<\/title>\n<meta name=\"description\" content=\"Who pays for value offering? When customers say your product is too expensive they&#039;re not necessarily talking about your price. 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