Surveys as far back as 1997 reveal that consumers consistently choose high value over low price. Despite this, many companies go for low price vendors without knowing their documented track record addressing capabilities, capacity, and customer service. Typically, the result is dissatisfaction and a costly search for a new vendor.

Digital label printing is a prime example of this scenario among product manufacturers. Focused on creating a quality product, too many manufacturers look at critical branding and messaging functions – including label creation and printing – as afterthoughts. Spitting out labels on a home printer, without understanding the complexity and importance of this “front door” to product presentation and credibility, is a standard default. It’s rarely an effective solution.

It’s not until reports show slow sales, customer dissatisfaction, and questionable reputation that the light bulb goes on, and companies prioritize such branding and messaging components as their label printing (and packaging). Our customer reviews often mention problems with previous vendors. Many of them become raving fans once they see how a printing partner (versus typical vendor) brings an unexpected high level of value – and peace of mind.

A February 1997 McKinsey & Company consulting report documents that consumers have ranked value higher than price for quite some time. (Actually, this has been the case since the dawn of commerce, but it often gets lost in the current marketplace noise and challenges created by financial, supply chain, political, and social complexities.)

Notes the report, “Customers do not buy solely on low price. They buy according to customer value, that is, the difference between the benefits a company gives customers and the price it charges.”

More recently in September 2022, a Consumer Affairs article reconfirmed growing consumer preference for value over price (in this case addressing the quality element of value), and how price-shopping often backfires. Notes the article, “Slickdeals, a company that helps consumers find the best deals on the internet, surveyed 2,000 adults across the country about their spending habits. Perhaps the biggest takeaway from the survey: three in five respondents said they’d rather pay more for something that’s better quality than opt for a cheaper alternative. Additionally, buying the cheaper option over a higher quality item backfired for more than 60% of the survey participants.” 

A Forbes 2019 article points out, “The Important Differences Between Price And Value…One of Warren Buffett’s most famous quotes (via Benjamin Graham) is, ‘Price is what you pay; value is what you get.’ It’s an idea that largely guides his investment decisions and one that he has used to achieve an unparalleled level of success…The most important distinction between price and value is the fact that price is arbitrary and value is fundamental. For example, consider a person selling gold bars for $5 a piece. The price of those gold bars is, in this instance, $5. It’s an arbitrary amount chosen by the seller for reasons known only to them. Yet, in spite of the fact that those gold bars are priced at $5, their value is so much more.”

Firstinsight.com further reinforces the concept of consumer preference for value in tandem with a “fair deal” based on competitive pricing: “Historically speaking, quality has been top of mind for consumers and was more important than price. In 2021, we conducted consumer research to temperature check market behavior, and consumers ranked the quality/value of a product (51%) higher than the price (30%)…When asked what influences consumers to shop in-store or online for the Holiday 2022 season, more than half (55%) of shoppers with an average [household income] of $200,000+ responded that deals influenced them to shop in-store while the same number (55%) said that quality influenced them to shop online.”

Translating this to Amazon, the online shopping giant, while buyers want a good price, they’re substantially influenced in buying decisions by such value-based criteria as positive reviews, top-notch customer service, reliability, convenience, and fast turnaround. We’ve found that these criteria, among others, are dictating what’s important to our customers as well. 

And an article in thestreet.com, detailing consumer buying decisions during our last major economic upheaval in 2011, cites a Nielsen survey that prioritizes value over price decision-making even when the financial going is tough. Notes the article, “Do Consumers Prefer Good Value or Low Prices?…Consumers usually find themselves choosing between value and cost, but now a new Nielsen report suggests which one shoppers generally prefer…In our sour economy, customers often find themselves having to choose between value and price…Nielsen’s 2011 Global Online Shopping and Saving Strategies Survey, which vetted the shopping attitudes of 25,000 consumers online in 51 countries, shows that by three percentage points, survey respondents chose good value over low price as the primary reason to buy products from a consumer packaged-goods retailer.”

The article continues, “While low prices are undoubtedly important, consumers around the world tell Nielsen that good value matters,” said James Russo, vice president of Global Consumer Insights, Nielsen, in a statement. “Value is not about price alone. Retailers and manufacturers who offer good values tailored around benefits of the product beyond price will resonate with consumers who continue to look for ways to stretch their money in a tough economy.”

In the label and packaging world, following is a checklist for product manufacturers to follow when vetting a printer, in order to establish and maintain a competitive edge and best ROI:

• Aim for compelling and professional appearance tied to everything from design through printing and fulfillment
• Document that customer service and support are built into the entire process from ordering through shipping. Specifics include offering: 1. A dedicated account manager with team backup; 2. Easy and reliable ordering through both online and live phone channels; 3. Robust customer support with fast response/callbacks; 4. Thorough discussion about design, printing, and pricing to ensure the best, most cost-effective solutions; and 5. Follow-up to assess satisfaction and any needed improvements;
• Confirm durability and high-quality label appearance that will hold up through such environmental stressors as water, temperature, and constant use (e.g., shampoo labels);
• Document reliable and consistent meeting of deadlines, price points, and quality expectations;
• Address socially-conscious preferences (when appropriate to manufacturer core values) for sustainable and carbon footprint-reducing printing products and processes. These include but aren’t limited to label stocks, inks, adhesives, and supplies;
• Determine efficacy of such value-added elements as QR Codes, Augmented Reality codes, and Custom Asset Tags to help educate, entertain, and protect consumers—both through health information disclosure and verification of product authenticity;
• Address and assess interactive/consumer feedback capabilities tied to interactive-enabled technology such as the above offerings, which can be incredibly valuable to chart the buying journey, consumer product interests/needs, and communications preferences. This helps improve relationships, cement customer loyalty, and offers continuous improvement of product(s) themselves.