How do you effectively establish the market value of an intangible?
The market value, by definition, is what the market will bear. So how do you find this out effectively, efficiently, and so that both sides walk away feeling they got their needs met?
A straw poll reveals that a lot of people hate buying a car. The reason is that they never really know what price to pay, how low the dealer will go. The dealer’s perspective is, of course, getting the most the customer will pay, while offering as few spiffs as he can. This, by its very nature, is the makings of mistrust and lose/lose negotiations.
When you sell an intangible, you have to use communication to establish the value of your product. Communication both to and from the customer. As a seller, you know your hard cost and what you’d like to charge. But you have to understand the customer’s needs to grasp the value of your product.
If you are in a highly competitive market, and who isn’t anymore, conditions can change hourly. Quota tracking, new competition, accountability improvements, competitive pricing are among the many other factors that are constantly in flux and affect market value.
The best way to get a handle on this is to have a relationship of trust and open communication between seller and buyer. The higher the ticket, the less the chance of that being the best price obtainable. But unless a customer shares openly with a seller, that seller will be handicapped at best and unmotivated at worst to get a better price for the customer.
Finally, why does your worth matter in this discussion of product value? Because if you sell an intangible, you are the product. Your word is the goods. Your reputation, your credibility is what you are selling.
Know what you are worth. Solicit the feedback. Seek referrals. Welcome criticism. For, without it, you’ll never know your worth.
