The world we live in as consumers has blurred the reality of growth. Everything that we consume today is based on a value driven pricing model. Value-based pricing is a strategy where prices are based mostly on consumers' perceived value of the product or service.
The value doesn’t need to be linked to price, but can be linked to prestige, or intangibles. Supermarket deals, sportswear deals, last minute deals, click frenzy’s, car deals, all enticing the consumer to take the leap - all for getting a better value.
Unfortunately, these very same consumers that now expect value in everything that they consume in their day to day lives start expecting it everywhere else... These same consumers are also key decision makers at large organisations, they are CEOs, they are juniors, they work!
But when it comes to paying for services and products that are work related, they bring this notion of expected perceived value even to these products and services.
I’ve heard stories from colleagues, friends and family about struggling to understand the charges of some of these services or have even been in a position where they have struggled to charge what they initially wanted.
All because we always want a better deal.
It’s human nature to always want a better deal - to feel an additional sense of accomplishment. Because we THINK that a better deal puts us in a better position, makes us look good on the books and is part of our KPI’s and this toxic mentality will only cause more harm if we preach it to our future generations.
Then, we FEEL good, knowing that we are getting something better than what was originally offered, and this comes from getting a discount, or by getting add ons thrown in.
This leads to actions that could cause more harm than good.
So my advice on this is to DO what’s right for your organisation and yourself, based on what you need and want, and not because how it will make you feel or look.