Price, Value and Affordability

Those who are in sales profession always encounter objections from their prospects in terms of the price of the product. The prospect would always ask about the price the product, and if the salesman were to tell him the price, he would immediately respond, "It is expensive!". Does it sound familiar? Perhaps, we are the ones who say that it is expensive or the price is too high!

Is the product really expensive? Let me answer the question by drawing your attention to the difference between the Price and the Value of the product! The value of the product lies in its usefulness and benefits.

When we understand and appreciate the value of a product, the price would not be an issue usually, assuming budget is not a problem. When we see the value of a product, we are usually prepared to pay for it. For example, many young people are paying as much $500 for a mobile phone. Is it expensive? Of course, it is. But, why are young people still buying and paying for it? It is the value of communications with their loved ones and friends that they like, besides enjoying the other benefits of a mobile phone.

On the other hand, if a person does not see the value of a product, even if you were to offer him the product at a lower price or give it to him free, he might not want it. He sees no value and benefit in the product.

When we say something is expensive, there is yet another thought! It is not so much the issue of price but affordability. For example, is a Rolex watch expensive? The answer is NO. If you do not believe me, please ask the person who wears a Rolex watch ( a genuine one) whether his Rolex watch is expensive. He would probably tell you "Not really! It is okay!" Why? The reason is because he could afford it. So, the next time before we say something is expensive, we should just say that "I cannot afford it at this point in time." The moment you can afford it, a Rolex watch is no longer expensive. Hope it makes sense to you!