What do you do when the "value-add" proposition you built your business around no longer works? When you watch customers buy from others instead of you because their product or service is cheaper and pretty much the same quality as yours? Well, you could stick your head in the sand (like many do). Or you could take a hard look at your company and determine what is real value versus what we call a value challenge.
To do this effectively, I offer a 5-point checklist. My article for Huffington Post explains the process further, which
you can read below or by clicking
5 Easy Steps To Help Businesses Facing The "Value Challenge"
At Simon Associates Management Consultants, we work with companies that want (or are forced) to change. Lately, as we consult with clients and conduct change workshops, we have observed a recurring frustration. Call it the “Value Challenge.”
All around the country, CEOs who believe they sell "value" are losing bids over pricing issues and are realizing that being a "value-add" solution provider is not as valued as it used to be.
Their well-designed products and services seem to have "great value” but if they can be easily replaced by another company's solutions at a lower price, what have they actually created? Something ephemeral? Of not such great "value"?
These CEOs’ frustration, even anger, led them to engage SAMC to work with them on the concept on value — specifically, what it means in the hearts and minds of the user. Our task was to help them figure out what to do when that wonderful "thing" they spent years creating no longer aligns with the price/value their customers want today.
What is value, anyway? Kind of what you make it.
Webster's Dictionary defines value as "the regard that something is held to deserve; the importance, worth, or usefulness of something." In other words, something’s value is determined by how it is
, not an "inherent" value.
Are you a business leader facing a "value challenge"? If so, here are a few things to think about.
The question of value is directly impacting companies facing major changes in their market space. Whether they manufacture craft beer, distribute innovative water bottle filling stations or create automotive products, they are watching their customers’ tastes change, which in turn is redefining the value of their products or services. They and others much like them are facing what we call the "
Is that you?
Some observations that might help you respond effectively.