Focusing solely on price can lower the value you receive, cost you money, and harm your business. As a business owner pricing your services, you do not want to be on the low-end of the available prices.

Focus on Value Delivered not Price: Value Equation

Chris offers a simple example of why only looking at hourly rate makes no sense.

Someone hired a business to perform a task, and that business offered a low hourly rate. After 150 hours, they had failed to complete the task.

To fix this, they went to a different business with a higher hourly rate. That new business was unable to use the work the earlier business had performed, but after 30 hours they had completed the task.

The “more expensive” solution ended up costing less, both in terms of time and money.

Focus on Value Delivered not Price: Value Your Time

With the example above, not only could the business have paid less if they had not only looked at the hourly rate, but they could have solved their problem much earlier, letting them make more money sooner.

You cannot save money by attempting to learn everything a lawyer learned at law school and in his years of experience to serve as your own attorney. This is really true of any professional service you hire.

Value your time, and focus on delivered value to your customers (and growing your business) as opposed to trying to spend time in what other professionals can do better than you.

Focus on Value Delivered not Price: Fly From the Low Price Game

As a business owner, you do not want to have be offering low prices. Why?

Because you will ultimately have your services judged on price, and this means a race to the bottom.

You want to pursue customers who are looking at your value and expertise.

You, similarly want to seek out companies that offer great value to your business.

Focus on Value Delivered not Price: Excellent Value Means High Price

This means, of course, that you must pursue excellence. You must become excellent at what you do. You must seek and use companies that deliver great value.

Of course, you should want to do this.

Early on, you may offer lower prices, as you learn your craft and build credibility.

Your prices should increase as you do this.

Focus on the total value delivered not price.