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Two halves of the value fraction


By Seth Godin

In a down economy, marketers fret a lot about price. We think that since times are tough, people care about price and nothing but price.

Of course, people actually care more about value. They care about value more than they used to because they can’t afford to overpay, they don’t want to make a mistake with their money.

Value = benefit/price. That means that one way to make value go up is to lower price, right?

The thing is, there’s another way to make the value go up. Increase what you give. Increase quality and quantity and the unmeasurable pieces that bring confidence and joy to an interaction.

When all of your competitors are busy increasing value by cutting prices, you can actually increase market share by increasing value and raising benefits.

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