At the start-up of each and every organization and the development of each model it is probable that a Price Idea could have been carefully regarded and obviously defined. Nevertheless, organisations change. They develop opportunistically in addition to strategically. Which explains why standard re-evaluation of the Price Idea ought to be a essential control for each business. When was the final time you analyzed your Price Proposition? If you haven’t taken a new look at it for some time, then there could not be described as a more crucial time to do this than when confronted with the worst recession for decades.
A Value Proposition must define the initial substance that the company or model provides for its value proposition. It will explain the aggressive advantage - why consumers want to purchase from that organisation rather than another; and it must be straightforward and obviously evidenced. Organisations who construct models realize the importance of a strong Price Proposition better than most. Yet it’s a continuing surprise in my own discussions with client businesses, from SMEs to the biggest corporate organisations, how rarely Price Propositions are reviewed and reassessed.
Most of us identify that the rate of business change is accelerating and that being receptive and vibrant are appreciated company attributes. Therefore, actually accepting that the Value Idea is powerful (and too many aren’t), it needs to evolve with the business. Ultimately it must be examined at least every four years but also when there’s significant change available or the market. Even when that seems to be anything of a post-rationalising of the Value Idea, the choice is to keep on running a business without preventing to take into account why clients are getting from you - or more significantly, perhaps not!
The endemic neglect of Price Proposition is even more shocking when you realize the extraordinary price of the reassessment process itself. When I run a Price Proposal course, it’s not unusual at the beginning to locate that board members will define their Price Proposal in noticeably and sometimes disconcertingly different ways. However, determining that usually stimulates a really important debate that effects in a much clearer, shared perspective of the company and their potential. It is definitely a valuable and stirring exercise for a small business leadership team.