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  • Writer's pictureTom Herman

Successful Companies Maintain a Price-to-Value Gap

Successful companies maintain a Price-to-Value gap.

Where the real and/or perceived value they provide,

Significantly exceeds the price they charge.

The wider the price-to-value gap,

The easier it is to attract and retain customers.

Many businesses operate on a fair exchange basis.

Where the customer’s value received,

Closely approximates the price paid.

This makes the company average and unremarkable.

And leads to greater competitive pressures and more customer churn.

So, how do you create more value for your customers?

Start by understanding their needs and problems better than anyone else.

Then work to solve them more thoroughly than anyone else.


It’s hard to compete against a business that consistently delivers more value than they charge for.


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