You do not determine value. The customer does. Here’s an example (paraphrased):
My daughter used the utility item I made for her at a class. The other moms and daughters liked it and I took orders for 35 more. I had planned on manufacturing another new product first but thought I would do this to learn more about this business. My problem is finding a cute print suitable for ages 5-16. Given the cost investment, the fabric should not be so cutesy that by the time the girl is 12, she doesn’t want to use the product anymore.
This DE is determining value. She’s thinking like a frugal mom, not the end user or dare I say, a manufacturer.
A 12 yr old is going to be bored silly or embarrassed by whatever she had when she was five.
If you walk out of a classroom with 35 orders, your product represents a tremendous value. A customer may think its value is such that it’s worth getting a new one as their tastes change.
Only the customer can determine a product’s value -not its maker. Don’t raise barriers or increase costs and complexities to what your customer has determined to be of value versus what you do. Looking for a forever cute print means never getting off the ground.
How many of you have made similar errors in determining a product’s value to the customer?