Price > Value or Value > Price?
June 30, 2016|By Alex Ebers, Assistant Vice President - Commercial Banking
Price: “The amount of money expected, required, or given in payment for something”
“Your price is too high. The competition is priced lower. Can you lower the price?”
These questions are asked every day in the realm of finance – especially in the competitive world of commercial banking. This seems to make sense because why would you ever pay more for something that you could get for less elsewhere?
However, this begs the question: does getting a lower price mean you are receiving service of lesser value? Does value matter? Think about it.
Have you ever found yourself on your way home from work when you notice that your gas tank is low… in fact it is beyond low… it’s nearly empty. In that moment, you spot a gas station conveniently located a quarter mile ahead. Does the price of that gasoline matter? Probably not, because you need the service it provides (a full tank of gas) and need it urgently. Are you willing to pay more for that gas (typically a couple more pennies) for the peace of mind associated with a full tank? You bet you are… because peace of mind matters.
Or perhaps you’re figuring out what you want to eat for dinner. Your mind races to several options. Then you choose a new fast-casual restaurant down the road. Embedded in your choice is a “No” to several competing choices and among those choices are fast-food restaurants. Why did you decide against cheaper fast food Because quality matters.
Final scenario: You’re in a consumer electronics store and you’ve narrowed your selection down to two products. One product is OK and could probably get the job done, but the second product is markedly superior in utility and functionality. The catch is that the second product is priced higher. Which will you choose? To make this example more real, think about the cell phone currently sitting next to you on your desk or in your pocket. Why did you choose IT over a flip phone? Because utility and functionality matter.
At The Bank of San Antonio, we provide value that is superior to that of competitor banks. That value manifests itself in greater peace of mind, quality service, and functionality. We know our clients value our service and our relationship.
We continually strive to provide our clients with significant value. We are a big V Bank. We are competitive with our interest rate pricing and we know our prices are commensurate with the value we add to our clients’ businesses.
So what about you? Which do you prefer? A big P and a little V? Or a little P and a big V?
What is your current bank providing? We hope this article helps you focus on what you value.