Value = Benefits/Cost
“Delivering value” is something we hear all the time, but what does it really mean? It likely means something different to each of us because our “wants” change depending on our “needs” at a particular time or in a certain situation. Value is the benefit a customer receives measured against the price paid. Usually this is used to evaluate the difference between two or more competing offerings.
The reputation of a company and how it presents itself plus the perception of its technology and the benefits of its products are key considerations in determining an organization’s “total market offering.” Therefore, value can be defined as the relationship of a company’s market offerings to those of its competitors.
We can break down value into four types: functional, monetary, social, and psychological. However, the importance of a type of value depends on the perspective of the customer and the particular purchase. Let’s look at each type of value:
- Functional value – this is what an offer does for the customer: the solution to a particular want.
- Monetary value – this is what it will cost relative to the perceived worth: a trade-off between other values and the price.
- Social value – this is how much owning a product or receiving a service allows the customer to connect with or benefit others.
- Psychological value – this is how much a product or service allows the customer to express themselves or heighten their effectiveness.
The key to delivering high perceived value is finding a blend of the types that best suits each customer, convincing them that what you are offering exceeds expectation in helping them solve a problem by providing a solution that produces the desired results at a competitive price, which will serve as a source of corporate pride in accomplishment.
Midrex is committed to providing sustainable value to its customers through technology innovations and product improvements that are relevant to their requirements; plant designs that are simple, reliable, and embrace technology advancements; interactive information flow; and empowering customers to take ownership of ideas and responsibility for actions.
The active involvement of Midrex in all phases of plant design, supply, operation, and maintenance assures customers that their investment is protected, and their plants will have long and productive lives.
Midrex Global Solutions was created in 2018 as a clear statement of our dedication to providing unsurpassed value for customers. It embodies the Midrex spirit of innovation, opportunity, and cooperation. The Global Solutions team is uniquely capable of providing solutions that are tailored to each customer’s wants. As a result, customers receive the knowledge, training, assistance, and aftermarket equipment and services to be successful.
We work hard to provide a “total market offering” that is representative of our commitment to the direct reduction industry and in step with the needs, wants, and demands of our customers.
(Wikipedia article titled, “Value (marketing)” was used as source)
This issue of Direct From Midrex features articles by Paul Wurth, a Midrex Construction Partner, about the current accomplishments and future potential for direct reduction-based steelmaking in the MENA Region and a detailed report by voestalpine Stahl of the use of HBI in its blast furnaces in Linz, Austria.