As consumers, we make purchases based on perceived value. Not price.

Then why do businesses get stuck selling on price, not value?

That’s what I want to talk about today—Value vs Price.

Remember when you chose marketing as your career path, dreaming of creative campaigns and impactful strategies?

Fast forward to today, and you're feeling underappreciated, underpaid, and stuck in a corporate maze.

What if I told you the problem isn't your skills or the field you've chosen, but how you've been taught to sell (your products, services, and yourself) based on price instead of value?

The Price vs. Value Problem

In the fast-paced world of marketing, businesses are racing to stay ahead of the curve, deliver results, and win clients.

Yet, many find themselves trapped in a cycle of undervaluing their services.

The root of this issue lies in a fundamental misunderstanding of the difference between price and value.

While price is simply the monetary amount exchanged for a service, value encompasses the quantifiable benefits and transformative outcomes a client receives.

This distinction, though crucial, is often overlooked in traditional marketing education, where the focus on the "4 P's" (Product, Price, Place, Promotion) tends to oversimplify the concept of pricing.

For illustration purposes, consider the case of a small marketing agency, Spark Digital, with a team of talented creatives and strategists.

Despite their innovative campaigns and solid results, they consistently find themselves underbidding projects just to win clients.

Their portfolio boasts impressive work, yet their bank account tells a different story.

This disconnect stems from a deeply ingrained habit of selling based on time and deliverables rather than outcomes and value.

Like many in the industry, Spark Digital has fallen into the trap of competing on price, unaware that they're leaving significant revenue—and authority—on the table.

This problem extends beyond just financial struggles.

It seeps into the core of how marketing professionals perceive their worth in the corporate ecosystem.

Marketers often find themselves viewed as a cost center rather than a revenue generator, leading to a lack of appreciation from executives and limited opportunities for career advancement.

This perception creates a vicious cycle: undervalued marketers undervalue their work, reinforcing the notion that marketing is a commodity rather than a strategic asset.

The result?

An industry-wide confidence crisis that keeps top talent from reaching their full potential and realizing the profits they truly earned.

The Hidden Costs of Undervaluing Your Pricing

The consequences of this value-pricing disconnect run deep and wide.

For business owners, it manifests as nights spent poring over financials, trying to figure out how to keep the lights on despite a full client roster.

It's the gut-wrenching decision to let go of a talented team member because the budget just doesn't allow for competitive salaries.

It's watching less skilled competitors land lucrative contracts simply because they've mastered the art of selling value.

This financial strain doesn't just impact the bottom line—it stifles innovation, limits growth, and turns the dream of running a successful business into a nightmare of barely breaking even.

But the true cost goes beyond numbers.

There's an emotional toll that comes with constantly feeling undervalued and overworked.

It's the frustration of pouring your heart and soul into a project, only to have a client haggle over a few hundred dollars.

It's the creeping imposter syndrome that sets in when you compare your rates to others.

For many business owners and marketers, this leads to an identity crisis.

You entered this field burning with creativity and ambition, ready to shape brands and influence markets.

Now, you find yourself questioning your career choice, wondering if you'll ever achieve the success and recognition you once dreamed of.

Imagine for a moment the long-term impact of this situation.

Envision watching your peers advance their careers while you remain stagnant, as "just a marketer" rather than a valued creator.

This is the real danger of undervaluing your services: it doesn't just affect your business today; it shapes your entire professional and personal trajectory.

Let me introduce you to the value equation—a framework that can be used in business and life—to start selling based on value instead of price.

The Value Equation

With the value equation, you can charge limitless amounts of money for your products or services based on value.

Now, I have to credit Alex Hormozi for this framework. It’s so good I can’t unlearn it and want to pass it on to you.

Let’s break it down from Spark Digital’s perspective.

Maximize Dream Outcome

You want to solve a problem worth solving and maximize the dream outcome in the prospect’s mind.

You can do this through your messaging.

For example, Spark Digital should reposition itself from “we do social media management” to “we engineer viral campaigns that 10x your brand’s online presence.”

Maximize Perceived Likelihood of Achievement

You want to use testimonials and proven case studies to persuade your prospect that their dream outcome is achievable with your help.

Share a case study showcasing a current customer 10x-ing their online presence.

Minimize Time Delay

Minimize the time it takes for your prospect to achieve their dream outcome by showcasing progress (small wins) throughout the process.

For example, Spark Digital could kickstart its customer relationship by implementing a “rapid 72-hour” package, providing quick wins for new clients to build trust and excitement.

Minimize Effort and Sacrifice

Make the effort and sacrifice from the prospect easier and more convenient.

Kind of like a luxury hotel experience — smooth, effortless, and leaving the client feeling valued at every touchpoint.

How to Implement The Value Equation Into Your Life

Now that you understand the power of the value equation and its potential to transform your career and business, it's time to take action.

But where do you start?

How do you actually implement this framework?

Mindset Jujitsu.

As always, I love to chat with you guys! Reply back to this email or DM me on X (@markfrommktg) with any questions, feedback, or to simply kick it.

Thanks for being here.

Talk soon,

Mark