Price and Value Are Not the Same

Price and value are not the same! In my previous blog, I discussed lessons from founder Jeff Bezos. He identified three business fundamentals that are not going to change in the coming years. The first one is the need for speed, which I translated for the dental profession as the pursuit of efficiency.

Bezos says that customers never say they want higher prices, but the amazon model shows that people will pay more when they perceive value. The lesson for dentistry is not to run a race to the bottom by cutting fees in the face of competition. It’s all about value, not price.

Amazon plays the value game and plays it well. Consumer advocate and radio personality Clarke Howard cited a recent study:

“We all know Walmart is cheap and Amazon is convenient, right? But is that convenience worth paying up to 100% more to you? Because that’s the premium a new study says you’ll pay on select items when you choose to get them on” saves time. Why drive to Walmart or even shop online with Walmart when Amazon makes the customer experience so seamless and easy? Amazon is extraordinarily convenient. Consumers will pay for great service, and patients will pay for quality dentistry (a service) because they want it done right.

Your messages to your dental patients should be:

  • It’s never cheaper to do it twice. Our goal is to do it once and do it right.
  • We do not offer the cheapest dentistry. We offer a high quality service.
  • The dentistry we provide is a great value for the dollar.

Make sure all members of your team know the difference between price and value–something I cover in detail in my consulting work and lectures.

Even the most cost-conscious consumers want value, which means not spending any money unwisely.  People want to get the maximum return on their investment. It’s called value. That value is not the same as cost, but it does come at a price.

Next post: The third lesson from applied to dentistry.

Click here to read my blog on efficiency.

Click here for more info on the study referenced above.