Price Vs Value: Finding out what clients really want
By Laura Moylan, Tender Specialist, Perth.
Imagine that you need to hire someone to do a job and you start by getting quotes from various companies. If you only compare prices at this stage with no other information to go on, your decision will likely be based on the cheapest option.
But what if you go a bit further by researching the companies and asking for their best offer? Although higher in price, some companies may offer added incentives like free extended workmanship warranty or on-call maintenance services. Or perhaps their website mentions that they will only use ethically sourced materials on their projects. One or more of these elements could influence your decision if they matter to you.
Upon revisiting the quotes with this new information, they no longer seem as indistinguishable. By finding out more about each entity, the selection process becomes more straightforward because you have a fuller picture of each company, in terms of both price and value.
To bid successfully, the trick is setting yourself apart from your competition. Do this by not only tendering a competitive price, but also by emphasising the unique value that your solution offers to address the client’s concerns.
In a nutshell:
Focus on your differentiators
What makes you or your solution unique compared to your competitors?
Align them with what matters to your client to create your discriminators
Is this something your client cares about too? How do you know this?
Quantify the value of discriminators
Can you assign a numerical value to the benefit for your client?
Have you conducted thorough research to make your value specific?
If no other value is offered, then decisions may solely rest on price. However, you can influence decision-making by linking your unique selling points with what is important to your client.
Perhaps this would look like:
Using revolutionary software to better automate the hotel bookings will reduce check-in / check-out time frames by 65% to improve the customer experience, leading to fewer complaints, increased 5-star reviews, and broader brand recognition.
Implementing staged works and a customised access solution for the building façade upgrade ensures project completion two weeks ahead of the scheduled PC date while also keeping the building fully operational.
At the end of the day, most people just want to know that they are getting the best bang for their buck. When you focus on selling value, you build a more meaningful connection with your client which improves your chances of winning the job.
Where will you add value on your next bid?