One of the benefits of a value approach is it helps both the customer and consultant qualify each other. I define qualifying as a dialog with the customer to determine if we (customer and consultant) should establish a business relationship. Through my study of value pricing I have learned to ask better questions in a professional manner to help the customer and myself decide. Many of these questions are part of the value quest.
Recently, I was visiting with a new customer who wanted a CRM solution for his two-person business. The customer was using a SaaS solution for $40 per month. He said this was too expensive. I could have taken expensive to mean he was paying more than he wanted. Instead, I inquired, “$40 per month does not seem like a large amount. Why do you think it is expensive?” It turns out he was barely using the SaaS solution, and therefore, thought he was wasting almost $500 per year.
Value pricing has helped me to learn to not accept the first answer at face value. It has also helped me learn to ask stronger, penetrating questions. His answer told me expensive was not a reflection of the value he wanted or the price he was willing to pay. It took further discussion to determine how he perceived the value of the solution. By not jumping to a conclusion, I discovered a truer perspective to help both the customer and myself qualify each other.