“Product value is the benefit that a customer gets by using a product to satisfy their needs, minus associated costs. Complexity is the effort associated with delivering such a product to the customer.”
How to Understand
Product Value
Add extra free
make the Client feels like a winner
add extra free samples, services
rewards or even thank you letters on his special days (anniversary, birthdays ..etc)
Cross-selling
reward your clients for referring a client or nominate your business
appreciate each of your clients who work toward helping you to rise in the Market
Reduce Cost
Reducing the price of products doesn't mean that this is a product value addition
COST OF POOR QUALITY
Understand the true impact of what we in the industry call “the cost of poor quality,” or COPQ. The cost of poor quality is the sum of costs that would disappear if there were no quality problems, in my case, the substantial cost of repairmen coming out over and over in a futile attempt to repair a device that should be removed and replaced.
The reason that COPQ remains invisible to companies like this one is that while their quality reputation comes at a very high cost, the accolades outweigh the horror stories. As a result, management lacks the incentive to look any deeper into the problems, and what may be called the “hidden factory,” a production cycle that includes endless rework but one that has been codified into “the way we do business around here.”
COST PRICE VALUE
Balancing between the cost ( reducing the product cost by finding the wholesalers for the product you need with the required quality helps in reducing cost without affecting the product quality and allows you to provide either a better discount rate or competitive price
