Price vs Value: The Importance of Implicit Value

“What’s the price?”

It’s a question I get asked everyday, and really it’s relevant and applicable with every financial interaction I’ve ever had in my life. Whether I’m a consumer like you, or as the sales guy.

Cars… Steaks… Cell Phones…. Vacations… Eyeglasses… VoIP Services.

A brand new sedan can cost $20,000, $30,000, or upwards of $120,000. A new cell phone can range from $0 to $100, to even $1,500. What’s the difference in value of a 2.5-star resort versus a 4.5-star resort?

Implicit Value

With each of those common purchases, we integrate the value of the product as part of the reason to buy it. If we judge solely on price, we may not entirely get what we want, or more importantly, NEED. So when researching a new office phone system, are you recognizing the value behind the price you see?

A holiday vacation at a 5 star palace along the Mayan Riviera will be completely different when compared to a 2.5 star hotel in Cancun. Sure both locations can provide warm sun, a cool pool, and a night to sort-of remember with that extra shot of Tequila, but that difference in price really shows in the value behind each resort. Take note of the food preparation, the staff, amenities of the resort, and comfortability of the bed you sleep in.

Now, I never used to splurge too much on my vacations, but once I said “what the heck!” and booked a 4 star resort. I’ve never looked back since then, because I saw the immense value in the amenities of the nicer resort over my 7-day stay in February versus the immediate thrill of saving a few hundred dollars when I booked it in September.

Vacations, Phones… it’s all the same!

With a total phone solution change, we would advise to look beyond the monthly price and investigate the intangibles of the phone providers to identify their value. Are they a Customer Success organization with steady internal growth, or a Sales-Driven company with heavy churn?

Don’t just look at the service fees each provider offers, but look as well at the hardware cost and replacement scenarios. What happens if one of your phones breaks? Are the phones high quality to begin with?

What features and functionality does the management portal offer, and is it easy to use as an office manager? It’s been my experience that a balanced comparison would also include the history of the provider you are considering, their SLA for downtime response, client testimonials, and searching independent Google reviews.

Just like a vacation at a 5-star resort would come with all the amenities, a premium phone solution should come with all the amenities your business could possibly need… and more! Features like integrations with other SaaS products, premium-quality hardware, and 24/7 Customer Support are just some things you can look forward to with your premium phone solution, just like you would the bottle of champagne, monogrammed bathrobe, and complimentary breakfast at the fancy resort.

Those combined factors can begin to fill the gaps between price and value.

Since I joined Versature, we are encouraged to slow down the sales process and understand the customer’s needs and challenges first before rushing to price. Our experience shows that when we take the time to properly analyze the situation, clients are happier from day one to day infinity. It’s no secret that these steps help build the value between Versature and our clients and ensure a successful long term partnership.

A phone system can represent the first and most important connection between your business and your clients & customers. I encourage you to look at a phone system as an investment into your business growth and continuity, not as an expense. Begin to look beyond the price and into the value of your next service provider.

Put us to the test!

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About Craig Heward

Craig serves as Versature's Sales Manager, where he uses his decade of experience in the telecom industry as a base for helping clients choose a phone solution that best suits their needs. When he's not hard at work, he can be found travelling with his wife, discovering the latest craft beer, or cheering on the Ottawa Redblacks.