Determining Your Value

Last week I attended a conference for marketing & creative firm principals with our creative director, Adrienne. One of the sessions described value pricing in a whole new light. The presenter said, your value is directly related to how quickly they can replace you. If you do not have any specific or unique skills then you get the lowest going rate while people and companies with unique skills for a smaller market are much more valuable and therefore demand a larger rate.

Think about how employees are paid. Do you pay a person who can use a shovel the same as one who can operate a crane? No, the crane operator has a skill that people “off the street” do not possess. Take it a step further and think about a crane operator that works for a stevedore company that can move cargo quickly, safely, and within the tight confines on a cargo ship. That operator has a smaller market that can potentially employ him, but his skill is sought after and rewarded greater than the person that can use a shovel since that is not a unique talent.

This same approach works for companies as well. For example, our company does construction marketing. You will not find useful information for your construction company on most design & marketing company blogs because they do not understand how construction companies operate, compete, and grow like we do. Therefore, we are unique and sought after for our expertise.

Does your company have a unique quality or skill set? If yes, do you mention it to prospects & customers? If no, can you grow a skill or industry into a differentiator?

Your value is not your mission statement or how good you think your customer service is because everyone has that. Also, your value is not low bid. I understand low bid exists in the construction industry, usually that is because construction companies do not differentiate themselves so the only differentiating part about them is the price. If you were one of the few companies with the skills do a specific task, you will be more efficient than someone guessing and your customers will pay for that assurance and peace of mind that you’ll get the job done right the first time.