What is Your Value Proposition? How to understand your value to make sales.
By Lizet Zayas Edited by Russell Sicklick
Opinions expressed by Entrepreneur contributors are their own.
Entrepreneurship is one of the most exciting journeys anybody can embrace. When we start with our business, we assume everybody will love and understand what we have to offer. But the main challenge in sales is not money or the price but not making our value clear to our potential clients.
As we compete in a saturated market and find ourselves struggling to sell, we have to ask ourselves these questions — what is my value to others?, and why do my clients need me over others?
The value proposition is a common term within creative agencies. However, most entrepreneurs have no experience doing these strategy sessions and miss implementing this critical step. As a result, they do not know the reason why their sales are low. As part of our sales journey, we have to come back to this question — what is our value?
Related: Want to Stand Out From the Crowd? Know Your Unique Value ...
There are many steps to consider to define our value proposition. Keep in mind there is a process of strategy and brainstorming to find it and it can take many sessions to perfect it. Below are some of my recommendations for you to consider so you can gain a better understanding as you pursue sales.
What is your product? What does it solve and why do you think it is worth it?
Remember the price of your product should not only be based on the production costs or what you want to make, but also on the value and impact it has on your customers.
Related: How to Develop and Evaluate Your Startup's Value Proposition
Know your target market
You may be aiming at the wrong segmentation. Perhaps you consider your product is for high-paying clients while your value is actually for low-budget clients. Accepting this will allow you to position your value and the price accordingly. Be realistic.
Define all the solutions your product offers
Think of the short-term and long-term effects, and put a price on each. Also, I recommend comparing them to your competition with details — explore the advantages and disadvantages. You may find your value is greater or less than you previously thought.
Do not be modest in your communication
Often we overlook how much value we have to offer. We focus on the description of our services, the logistics and the legal aspects. But not expressing enough how much impact we can create for our clients or customers.
Put yourself in your client's place
Imagine how the experience will be for them. Will they use your products for a long time or a short period? Knowing this will help you understand your value.
Understand the difference between wanting something, needing something or both.
Sometimes we are confident to know what others need and we assume our assumptions are correct, but we do not really know for sure the lives of others. When we understand that our products address a desire, a need or both, we can be clear on our value, our price and who to market it to.
Don't ignore the emotional aspect
Sales are tied to emotions. A potential client may sit and postpone buying a product that will be a solution for something that is needed. They may make an impulse buy or expensive transaction on something that instantly changes their mood, such as a vacation. It makes no sense but people spend faster on things that they know will make them feel better, no matter the cost. So to find your value, determine how your product can connect to their emotions and make them feel better. Addressing pain points, in my opinion, can create a resentful reaction, and fear of being manipulated. We all are seeking to feel good, so find your value with this intention.
Work with experts to do creative and strategy sessions
Explore your customer journey and the impact your product offers. Creative people are always thinking outside the box, exploring all possible scenarios.
Remember, our value is constantly evolving. Our clients and we, as business owners, will change as well. So our value is something we constantly have to revisit. The more we place ourselves seeking sales, the more we will be forced to understand what we have to offer. Don't give up, just keep learning your uniqueness and you'll get there.
Related: How to Develop a Winning Value Proposition (Infographic)
