Hello. So I'm Alicia here. And here we go to our first chapter, what is value? What is value? What is value to you? What is value to your customers?

What is the difference between value and price? Is it the same thing? There's something that costs five euros is really a value of five euros for everyone. Think about it for a minute. Let's then jump into the first our first set of ideas. So let's see this example.

You have this BMW and you have these Kia car. They are both comfortable they both will take you to the desired destination with comfort safety. That one is more expensive than the other maybe three times more, not a little bit, not a few bucks, three times more. And the question is, why is that? Is that really costs? Is that related to, to performance?

Is that related to any feature special feature? Or why is that, as you can see here on the slide, BMW doesn't need to lower their prices, BMW has a reputation as a brand. And people that go to buy a BMW, they know that they will pay expensive than other brands having a car placed on the same segment, but one is considered luxury. And the other one not even if this gear for pieces for your standards and for general standards, may be considered luxury, but the position of key He's not in that luxury segment. And therefore, they cannot afford to put it at the same price level as BMW or Mercedes or Audi. And this is the basic of value.

Value is not about the price that you pay is about the value that you give to what you pay the value of the branding of the status of the reputation of the safety of the even if psychological safety or it's something that you embedded. So this is kind of a human natural behavior and buyers and sellers, they do have it as well. Most of the of the times we're not aware of it. We just go, which are almost automatic pilots, but this is the idea of value. It's how much are you willing to pay for what you want? Right.

Let's go to the next one. Let's take it Example about baby stuff. Of course, we are all very concerned about the safety and health of our babies. That's a priority, that's a top priority. And therefore we tend to think that paying more expensive will relieve us. Somehow, that feeling that we are doing the best we can for our kids, but does it translates in something objective?

Not necessarily. You have here the good example. That it's many, many, many times it is played in our mindset. So, okay, that's nice to know. So how do buyers look at value different aspects That can play a role here. And it's not only the price, the price should be the last thing that you should discuss with your customers.

It should be around how can I how can they improve their costs? How can they improve their processes? How can they reduce complexity? How can you add an extra feature? How can you simplify all of these things? They often cannot be translated immediately on their hand, terms of pricing, how much would you price that?

And that's where you need to explore all these areas. And that's where you can instead of going to a simple price discussion 1000 then you can say no, it's 1200 Because of this, this and this, and you don't need to go to a cost breakdown, don't do it. The more you go on into causes breakdown, the more that customer will challenge you a but these costs, I found out that they are not quick. So don't do it. It's a package This is it. So think about it.

Think about it. Think about how can you use this approach with your customers? Where are you lagging behind? What are you missing so far? value? Not price.

Even if it goes no, always use the word pricing. Change it and instead of saying hey, my offer is or my price is set, okay? This is the value of our offer. It's changed the word in itself as a different meaning as a different reasoning in their minds in your mind. Whenever Talk and think about price. You always think about struggle, you always think about challenging.

Whenever you think about value, if you're more confident, you feel more empowered to have a longer discussion, having the right arguments. So there are a couple of benefits for the buyers with this approach and, but you need to be careful to do your homework, tackle issues that can be tackled, don't come around with solutions for things or for problems that they don't have. Don't come around with complexity for things where they need simplicity. So it's crucial that beforehand, you know, you understand your customer wants, needs and struggles. Know where you can make a difference. This is crucial.

And if it turns out that you cannot make a difference, it's any point to get over it really so. Maybe some other area, maybe the payment terms, maybe with a discount in terms of volume worry with, Think it over. Try to find out something. Find out. Know your customers properly. Know your customers properly, not assume even if it's a customer that you are handling for already some time.

Try to understand their struggles. Try to understand that Eclipse. Don't listen only to the buyer. Try to talk to other people in the organization to understand where can you help them out. And don't try to help them out in areas that they don't need. Because buyers we don't like once like it.

So be structured. Find out where you can make a difference. Come up with possible solutions and come up with proposals that are value driven and not price driven. What you need to watch out is don't come to solve with solutions that customers don't need. Don't come with the wrong approach roll up solutions. If customers are willing, for simplicity, don't come with complex complexity.

And don't try to just bring some air to discussion meaning, bring real arguments. Don't try just to fool around your customers. They are not stupid. They will understand that you are trying to to sell iron for gold. That as long as you have some arguments, there, you can discuss it and that's where You have to work. Okay?

This is the end of the first chapter. What is value? What is value for you think about it. Start with yourself, what is value for you? How much what is the price of your car? And what is the value?

Maybe you have an old car. But for you the value is higher because it's still running. It takes you forever, wherever you need to go and still comfortable. So value and price are different things. Try to segregate them. Okay.

Good and see you in the next chapter.