VALUE COMMUNICATION

Value communication can have a great effect on sales and price realization when your product or service creates value that is not otherwise obvious to potential buyers. The less experience a customer has in a market or the more innovative a product's benefits, the more likely it is that the customer will not recognize nor fully appreciate the value of a product or service. For example, without an explicit message from the seller, a business buyer might not realize that a nearby distribution center offering shorter delivery times could reduce or eliminate the cost of carrying inventories. An unsophisticated buyer might not recognize how quickly inventoried items depreciate. Properly informed, the customer would see how much money faster delivery saves, justifying a price premium.

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