Have you ever had one of those weeks where it seems you don’t have a chance to catch your breath? For me, this has been one of those weeks! I am working with some exciting people, and when we get together, we come up with huge ideas! One of the things we are working on is developing new and innovative ways to provide value to businesses. To begin to have a meaningful conversation, we had to first define what it means to provide value. We explored the difference between added value and value added. This week I am going to share the difference, and discuss why it is significant. Be sure to check out the Challenge below that can change your life and your business for the better! Thank you for reading!
Added Value or Value Added?
When most people are deciding to make a purchase, they put some thought into the decision. Value is not the same thing as cost. If the lowest cost represents the best value, nobody would buy a Mercedes. But Mercedes is still selling cars. So, whether you are buying some clothes, a car, or deciding where to go for lunch chances are you’ll do a cost benefit analysis. Is this product worth the money?
How do you determine if the product is worth the money? Well, if you’re like me, you might do some research, but at some point, you will make a judgement, based on perceived value. Quick example… you receive this newsletter each week. You’re reading it because you believe the value in this newsletter is worth the few minutes you will spend reading it.
If you’ve ever had the unfortunate experience of not being able to sleep, and you find yourself watching an infomercial in the middle of the night, you’ve been exposed to added value. Late night infomercials are always trying to add value to the products they are selling. First, they’ll tell you that the pot you can use for microwaving pasta is worth $69.99, but is available to you for only $9.99! Then they try to add value to your $9.99 by saying, “if you act now we’ll throw in a pot holder!” The pot holder is the added value. It is a product or service added to your purchase to add value to your $9.99.
The last time I bought a car, the dealership offered free car washes for life! All I have to do is take my dirty van to the dealer, and they’ll wash it for me for as long as I own the van! This is another example of added value. This is designed to keep me from going to the other dealer down the street and buying the van from them.
But do these things really add value? No, not really. I still don’t have the microwave pasta cooker, and a free car wash isn’t going to keep me loyal a particular car dealer. In these examples, they are added value that is used as an attempt at marketing or packaging “a great deal” for you.
Value added is completely different. This is a situation when you provide value that is meaningful. Mastering this can help you separate yourself from your peers, and to accelerate your career. Understanding this will take your business from a competitive company… to an industry leader. When value is added to your workplace you will create engaged, productive employees.
So, what is value added? Think for a moment of a teacher, coach, boss, leader of any type that you admired. What made that person standout amongst other teachers, coaches, bosses, or leaders? Chances are you found some inherent value in your relationship. These people made you feel better, or hopefully become better, through your relationship. They likely coached you to do something you didn’t think was possible, or taught you something you didn’t already know. Better yet, they might have inspired you to push beyond where you are, and to reach higher ground! Value added is often an intangible feature that you can’t necessarily define, but you know it’s helping you, your business, or your team grow.
What Difference Does It Make?
It makes all the difference in the world! It doesn’t matter what you add to the microwave pasta cooker, I’m not going to buy it. In fact, you could probably give me the $9.99, and I still wouldn’t want it. I’m not choosing where to buy a car based on free car washes. Honestly, it’s inconvenient to go to the dealer for a car wash. I’m more likely to purchase a car wash locally or when I stop for gas. These things do not drive purchasing decisions for me.
However, I am more likely do to business with someone that I feel provides value added to the transaction. I want to do business with someone that wants me or my business to be successful, and is there to help me grow. As a small business owner, I have to get help from others from time to time, because I cannot do everything. The people that I choose to work with don’t just provide the service I need, but also collaborate on helping to grow my business. In return, I pay for the service, but also collaborate on helping them grow. Value added can be realized through referrals or advice, or even encouragement.
This week take a look at your relationships with your employees, colleagues, clients, or customers and ask yourself, “Is this relationship based on value added or added value?” When you’re adding value, you’ll lose clients, customers, and employees as soon as someone offers free car washes or a potholder! If your business relationships are value added, you’ll have long lasting, meaningful relationships that are mutually beneficial and so much more rewarding.
Are your relationships based on added value, or value added?
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Shaffer Ingenuity can help you find what really drives you and provide you the tools to achieve those goals!
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I am excited to announce that have finalized our next live event “Mastering the Mental Game!” This is going to be entertaining and life changing! You won’t want to miss it. Watch your inbox or go to our website to find out how to register. Space is limited!
• When: Saturday November 11th
• From 9:00 am to 1:00 pm
• Open discussion to follow
• Where: Charles I. Ecker Business Training Center
6751 Columbia Gateway Dr. Columbia, MD 21046
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Do you have a corporate training event, know of any group that may benefit from learning about the true secret to goal setting and achieving? Please contact me about talking to your group or corporate event!
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Don’t forget to pick up a copy of my book Maximizing The Human Potential available now on my https://shafferingenuity.com/book.html or at Amazon.com.
Now available for your Kindle as well!
Quote of the Week
“Customer service will become the primary value added function of every business.”
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