Written by Ross Rains
Is price your only consideration in looking for office space?
I am a business coach and I am always looking for simple thought tools. Here’s one - it’s a formula about Cost, Benefits and Value. Have you heard of V = B – C?
V = Value B = Benefits C = Cost (or price)
If V = C, that means the only value one places in something is the cost or price. This reduces everything down to a commodity. Each of our industries is at risk of commoditization, unless we can differentiate ourselves by benefits that include but exceed cost alone! I don’t know about you, but I don’t think of my business as a commodity. I am not trying to compete for the bottom of the market, by being the lowest price provider ... and neither should you! The key is in the “B”... Benefits = your product or service quality, speed, communication, excellence, flexibility, 24/7 access, personal touch, additional benefits you include, added features, etc., etc. If the Benefits to the buyer are significant and far exceed the perception of the Cost alone, then there is real total Value to be experienced, including Cost.
We are looking for great tenants who provide exceptional value to their clients. That is what will keep you, the tenant happy, and us as well! Now, review the Benefits of our offering which you are contemplating and consider the contribution to Value they would make for you. Cost is a factor, for all of us, but it is the Value that makes the difference! Business is about Value creation and Value delivery! How are you doing in this regard? So, ponder this ... how could you apply this formula to your business? Are you a Value-provider because you offer multiple benefits to your customers, or just competing on Cost. Where do you want to be?!
V = B – C
To your success, Ross
Ross Rains leads a family run business that provides office facilities to over 100+ businesses and professional in the London – St. Thomas area, through 100,000+ sf of owned commercial office facilities. He is also the President of Tier1 Exec Corporation and coaches Entrepreneurs and CEOs in how to take their businesses to the next level.