Wednesday, February 5, 2014

Clients Are Less Concerned About Price If They Get Value

Many resume writers tell me that their clients are price-sensitive. But they may not actually be price-sensitive … they may be value-sensitive.

Why can some resume writers charge $2,000 for a resume, when you have a hard time getting $350? The answer isn't necessarily in the skill of you as a resume writer, or the financial situation of the client.

More likely, the difference is the value that the client perceives from his or her investment.

What is the first question people often ask when they want to purchase something? "How much does it cost?" And, that's only after we've turned the object over and over looking for the price tag.

Price is simply a dollar amount assigned to an item or service. You may have even set your resume writing prices arbitrarily — lots of other people are basing their resume writing services on an hourly rate of $50/hour, and according to the 2011 Resume Writers' Digest Annual Industry survey, and nearly a third of resume writers charging $300-$499 for a resume, so (you think to yourself), I'm going to charge $350.

As a business owner, you want to stay competitive without alienating your resume clients. It's a matter of profit as well. If you come in too low, then you're leaving money on the table. (And, some clients may actually be turned off if you charge too little!)

While the concepts of price and value have gotten trapped together, they are not synonymous. Two resume prospects may initially seem very similar. Both are account executives in their mid-30s, making a salary of $45,000 a year. Their personal situations are similar — both married, with a young child at home. But when you quote a price of $600 for a resume to both of them, and one books, and the other one doesn't.

One values the impact that a professionally written resume can have on his ability to meet his career goals. Therefore, value must appeal to a prospect's needs.

Value refers to the significance that we apply to a good or service. It is tied into the perception of your business brand. Honda has built a reputation as a solidly made car. As such, people will invest more in one because it will keep their families safe and they can drive it for a long time. The decision, to buy, moves beyond mere price to what is perceived as the additional benefit that comes along with purchasing this kind of car. 

Translating Value
As you work to present your services to the prospective resume clients, consider how you will translate the value of your brand as well as the price. Time and time again, business owners who reach their customers on a more personal level with their marketing strategies are delivering value along with their price. If a customer feels that they will get value from your services (beyond the price they pay), they will buy — and continue to buy — from you.

So, how do you do that? Look at your services and ask yourself a few questions. What can you do for your clients that they can't do for themselves? In many instances, it's write an interview-winning resume. And the "interview-winning" part is the key. Lots of people can write a resume. Fewer of them can write one that engages the hiring manager or recruiter to call immediately.

What It Comes Down To
Is price or value more important? They are not the same, but communicating the value of your services to customers can keep them buying, even if the price is higher than the competition.

Loyalty may also run deeper when you build your brand on value rather than just price.

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