Food for thought… At Roger Martin Fagg’s Business Leader Seminar last week he made a great point about Value for Money.

He explained that it can be stated statistically: Value for Money = Satisfaction minus Price.

The key point being made was that many see ‘Value for Money’ as just a matter of cheap price. That is not the case.

Value for Money is the difference between ‘Satisfaction and Price’. So, goods and services can be high price, yet still deliver great value for money. Conversely, low price items will not be seen as value for money if the satisfaction is not greater than the expectation.

Satisfaction comes in many forms, but generally it is about ‘the experience’, ‘security’ and ‘product quality’. If you are looking to get a better price for your products and services, then increasing the satisfaction you deliver is the first place to look.

Published on: March 23rd, 2011