Today our goal is to answer as simply as possible to 3 questions on VALUE for agricultural products:
- What's Value?
- Why Value is so important for marketing and selling in agricultural area?
- How I can understand what's Value in my product?
Value is a really simple but complex concept at the same time.
My extremely brief definition is:
What your customer cares about
Everything else doesn't matter.
Everything matters for you but doesn't matters for you customer isn't Value.
Think you've to buy a new car.
Suppose you need a 80 hp maximum compact vehicle for a city use.
A car seller is trying to explain how good and elastic and powerful is their new 200 hp engine.
The 200 hp engine model costs 20% more than the 80 hp one.
For the salesman extra 120 hp are a plus.
Is this Value?
No. Because you don't need them and ABOVE ALL you are not willing to pay extra money for them.
So, another good definition of value is:
What customer is willing to pay for
Why Value is so important for marketing and selling in agricultural area?
Because you have to propose what you can sell.
If you propose to your potential customers something they're not interested in, I think it could be really hard to create a profitable business.
Your entire efforts must focus on Value Proposition.
Once you've understood what your customers want from you, or to say better, which part of your product or service they're interested in, you have found the direction to follow for your work.
Remember: only what your customers are willing to pay is worth your attention.
What usually producers forget is the customer Point Of View.
If you think your product is great, it is fine because you'll be able to better transmit good feelings talking about it.
But it's not enough.
Customers must think what you're offering is GREAT for them.
You have 2 main ways to produce Value.
1-you start from what people want and you produce and serve it as they want.
2-you analyze your product and related service, and understand which part of them people are willing to pay.
How can I understand what people want?
There is not a unique way.
You could start from an intuition.
Or you could ask people.
Or you could ask yourself what you'd think if you were in the customer's shoes.
And That's all?
Another fundamental step is to DIFFERENTIATE. I've already discussed about this topic in a dedicate article.
Because despite you find something people want, if you want succeed, you have to find a niche in which no one else has prevoiusly become leader.
If you're lucky, and also clever, you could also been producing something original and wanted.
Also in this case, you'd better focus on what part of your product service is worth customer's attention, and so work on this.
VALUE PROPOSITION is the action of bringing what you have identified as VALUE to your (potential) CUSTOMERS.
VALUE PROPOSITION is the first step before start:
We'll talk about these topics in next articles.
Questions are welcome!
See you soon,