1120: Understanding Your Value and How to Sell It with Mark Stiving

2023-01-03

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Mark Stiving is the Founder and Chief Pricing Educator at Impact Pricing LLC, as well as the host of the podcast Impact Pricing and author of the book Selling Value. Today, Mark talks about what value is and how it relates to both buyers and sellers. He digs into how sellers must be keen in determining if a buyer is in a will I or which one buying decision.He defines the different types of values such as inherent value, relative value, and economic value, and says that understanding each is important to sell better...

Mark Stiving is the Founder and Chief Pricing Educator at Impact Pricing LLC, as well as the host of the podcast Impact Pricing and author of the book Selling Value. Today, Mark talks about what value is and how it relates to both buyers and sellers. He digs into how sellers must be keen in determining if a buyer is in a will I or which one buying decision.

He defines the different types of values such as inherent value, relative value, and economic value, and says that understanding each is important to sell better from your buyer's perspective. Mark also shares the 4 value-based characteristics that buyers and sellers should look for and the concept that buyers trade off price for value.

HIGHLIGHT QUOTES

Defining inherent and economic value for a business - Mark: "Inherent value is what's the value of solving the problem? If you're gonna go buy something, I don't care what it is, as a consumer, as a business, if you're gonna go buy something, the reason that you're buying it is that you believe it has more value than the price you have to pay for it."

"If we go back to economic value, as a company, I'm only gonna buy something for a hundred thousand if it makes me at least a hundred thousand more in profit, preferably about a million more in profit, but it better be at least a hundred thousand or I'm not gonna spend that."

Relative value shows what you can do that your competitor cannot - Mark: "What is the value of my product relative to my competitor's product? What are the things I do differently? What are the problems that I can solve that they can't solve? What's the dollar, the economic value of the problems I can solve that they can't solve?"

The difference between WILL I and WHICH ONE decision - Mark: "Typically, when a buyer buys something, we make two different purchase decisions. The first decision we make is, will I buy something in this category? Am I gonna buy a new car? Yes. No. Well, if the answer's no, great. I'm not shopping. As soon as I say yes, then I switch to, well, which one am I gonna go buy?"

"And now I'm shopping BMW, Porsche, Lexus, you know, whatever the brands are that I might consider and the styles inside there. So I'm now making a which one decision. When people are making a which one decision, they're very price sensitive. When people are making the will I decision, price isn't driving that decision. Something else is."

Find out more about Mark in the links below: