A Few Dollars More - Value

"There is hardly anything in the world that some man cannot make a little cheaper, and the people who consider price only are this man's lawful prey." Attributed to English critic, essayist, and reformer John Ruskin (8 February 1819 - 20 January 1900), the topic of price has been discussed since the first purchase in history. In every economic climate, whether buying a product or service, price is a major factor in the decision and in a slumping or down economy, it usually is the only feature considered.

Based on the statement by John Ruskin, price should be only one aspect of the purchasing decision. Price is an excellent starting point and once we know what the price of the goods or service is we can determine the value we receive for the money. For example, let's say you work for or own a medium size business and utilize a cleaning service. The decision is based on the lowest price received because of the "perceived cost savings" you realize.

What value do you receive for the monthly cleaning fee? Your facility receives the basic "trash and dash" service, that is, the trash is emptied, restrooms cleaned, hard floors mopped, and heavy traffic areas vacuumed three to five times a week. Because of the low cost that is all the janitors have time to do for you. Looking deeper into this basic service are you really saving money and are you getting the best value for your money? Consider this example; germs build up in offices, restrooms, break rooms - everywhere workers congregate and you don't see them so to your eye, the facility is clean and you are saving money. Because you cannot see germs so there is no need to worry, "out of sight, out of mind" and my facility is clean.

Have you considered employee absenteeism from illness due to the spread of germs located in your facility? In the December 10, 2008 Issue of The Total View, a survey was reported by Mercer called "The Total Financial Impact of Employee Absences,"and the total cost of absence can equal as much as 36% of payroll (compared to 15.4% for health care coverage). Of that figure 9% account for unplanned absences and for a mid-size business that can account for as much as $4.5 million dollars per year. The survey reports that unplanned absences like casual sick days result in the highest per-day productivity loss, 21% versus just 15% for planned absences like vacation days.

The basic service sanitizes the restrooms, but what about other areas that are not being cleaned because of the low cost does allow for this service? What if for a "few dollars more" you could help reduce the potential for the absences and keep productivity and moral high because you invest in value added cleaning. If your cleaning service cleaned for S.H.A.P.E., an acronym for Safety, Health, Asset Preservation, Productivity, and Environment, you could pay for the added benefit from the savings generated by less absenteeism and healthy, happy employees.

Cleaning for health involves extra time and effort that costs a few dollars more, but pays for itself by greater productivity. In our example, it is critical for daily cleaning of touch points, such as doorknobs, light switches, telephones, railings, and the reception desk. These are all key area's that must be sanitized to eliminate the spread of germs from visitors and employees.

All products and services have intangible features, advantages, and benefits. An advantage is what the feature does, the function it performs. The benefit is the value of the advantage to the user. When making a purchasing decision price is only one consideration. Take our example above, cleaning for health; the feature is spending extra time cleaning touch points to eliminate germs. The advantage is a reduction in employee illness and the benefits, or values, greater productivity and savings from less absenteeism which will pay for the" few dollars more," and add additional profits to the bottom line.

Price is definitely a factor to consider but by digging deeper a person can determine what value is obtained for the money. In challenging economic times it is wise to get the best "bang for the buck." Next time a purchasing decision is made, consider John Ruskin's statement, you can always get it cheaper, but take time to see if it is better. Matching products and/or services, side-by-side - apples to apples - is the best way to determine features, advantages, and true value.

As a sales professional it is your responsibility to help the buyer look at all the factors. Your success and in many cases your income depends upon your ability to do just that. Are you up to the challenge?