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The Dollarization Discipline

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The Dollarization Discipline

How Smart Companies Create Customer Value... and Profit From It

Wiley,

15 min read
10 take-aways
Text available

What's inside?

To show your product's value, state its benefits as money. That's how dollarization solves sales and pricing problems.

Editorial Rating

6

Recommendation

Basically, dollarization is the simple but useful concept that you can quantify the benefit of any product or service and express it as a dollar value. Then you can use those value statements to enhance sales, strengthen client-supplier relationships, focus your marketing effort and set competitive prices. Consultants and authors Jeffrey J. Fox and Richard C. Gregory successfully explain why product and service providers should consider this simple idea. They also offer interesting chapters on pricing new and existing products. Their real-life examples alone make this book valuable to anyone who is involved in pricing, although the book is repetitive and poorly organized with parts of early chapters appearing again many chapters later. However, getAbstract recommends it for the value it adds: a useful explanation of how to make dollarization part of your strategy. Now put a price on that.

Summary

Defining Your Product’s True Value

Businesses often make purchasing decisions based only on price. But price is just one of the variables that can influence why a customer buys. When customers buy lesser goods - say your product cost more but lasts longer - it is usually the sellers’ fault since suppliers must show how their products meet their customers’ financial, production and service needs.

When explaining why your product or service has greater value than a competing product, evaluate the total cost of buying each product to show the customer the actual benefit in dollars. This process is called dollarization and it expresses what your product is really worth to the customer. Some companies have used dollarization for years, but not consistently, broadly or company-wide. Dollarization can benefit buyers and sellers. It can show buyers the real cost advantage of using your product over time, including savings from a return on investment, income from accelerating a product’s time to market and other types of value.

The basis for dollarization is the conversion of perceived value to actual dollars. Value is most often used in business to mean value-added. ...

About the Authors

Jeffrey J. Fox is the author of How to Become a CEO and the founder and president of Fox & Company, Inc., a management consulting firm specializing in market strategy development and sales effectiveness. Richard C. Gregory is a senior consultant with Fox & Company and leads the company’s consulting and training practice, helping clients quantify the value they deliver.

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