Summary: When it comes to creating value, don’t try to do everything, deliver quality that people want and realise quality and cost are related.
Don’t try and do everything
It’s not case of adding all the features under the sun. Features cost money to provide. It is instead a case of finding what consumers want and providing the best mix between features and cost, in order to deliver the best value. If you gave customers everything they wanted, you’d end up with a product that met all their requirements, but was too expensive not to mention confusing! Remember, features can become detriments just as easily as they can become benefits. They can detract from as well as add value.
Value and Quality
Quality is useless unless it’s in areas that people want. In fact quality in some areas can actually lower value, because it costs too much to provide or is not wanted by the customer at all. That’s when a market ends up being over served and leaves itself wide open to low cost competition. Quality is what’s right for the market. Not what you think it is, but what they think it is. Quality and value are always relative to other offerings and the best quality offering today will always be surpassed in the future.
Value and Cost
You may be able to create superior value, but when you look at the cost, you actually can’t because the prices to do so are sky high. It’s the reason so many cars are still using petrol. Only now are the costs of alternative technologies starting to come down, making electric cars better and cheaper than ever before.
It’s the very same with features. Adding them creates cost and can detract, hide or overshadow, even interfere with the features that customers care about most.
We’ll look at costs a lot closer when we come onto Value Creators later.
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