Quote of The Week

“Price is what you pay.  Value is what you get.” – Warren Buffet

 So many businesses are pricing their offerings to cover their own costs.  This is my personal estimate, but I believe that in America less than 10% of  products and services are actually sold for the value that they bring to the customer.

I remarked to my wife one time that “a bad haircut is never cheap.”  If something is worthless, doesn’t improve your life in some way, it is overpriced, no matter what you paid for it.

 In the same way, it’s impossible to spend too much obtaining your dreams.  If a product or service can save you time, make you healthier, wealthier, or happier, its price should be more closely related to that fact than to it’s production cost.

 Since this is supposed to be a marketing blog, let’s bring this principle home.

 Because good marketing actually produces profit, your budget should view marketing as an investment, not an expense.  Sure, it may cost some money up front, but your ROI will more than justify that.  Cost-effective does not necessarily mean inexpensive.  If investing in marketing doubles your sales, it would be inexpensive to throw $100 into your efforts.  It would also be tremendously stupid.  Why not spend a fortune?  Your marketing is no longer inexpensive, but it is remarkably cost-effective.  Look at what you get for the money!!

Here are two lessons we can get from this quote from Mr. Buffet:

1. Seek to add value to your customers’ lives through your products and services.  This is the key to developing staying-power in your business.
2. Remember to base your prices on that value.

By the way, let me formally apologize for missing last week’s quote.  I’ll try not to let that happen again.

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