Salespeople must be tired of hearing the term "value."

Stop worrying about price and sell your value.

Value-based selling always wins.

And my favorite: What's the value-add? 

It's not that these phrases are wrong; in fact, their intent is usually correct and, if we're being completely open, I'm sure I've used them.

However, it's rare to hear the conversation taken to the next level by discussing what value actually is. It's become one of those mystical corporate-speak terms like synergy or alignment. Let's try to explain it. Here are seven descriptions of value that should make this topic easier and more applicable.

1. Value is the customer's perceived gain minus their perceived cost. I had to list this one first for the engineers. The key word in this formula is perceived. Not understanding what these gains and losses are can lead to the infamous "I thought that was a done deal!"

Customers don't just look at price as cost. They also consider things like lead time, risk, and terms. You must know these two perceptions to fully understand the net gain that customers see in your solution.

2. Value is defined by the customer. It doesn't matter how great your product or service is if you don't know how it impacts your customer. Regardless of your benefit statements and marketing message, you must understand the customer's situation before thinking you know the value you can offer.

3. Five different stakeholders will define value in five different ways. A liter of water has different value to someone boiling pasta than it does to someone who's been lost in the desert for two days. The hard part is that those two people – and several others – are likely on the decision-making committee. To ensure a win, you need to understand who's dying of thirst and who simply wants to cook some ziti.

4. The customer usually doesn't know what is most valuable to them. The goal of discovery questions is not simply to get answers so you can understand your customer's needs. The goal is to spark a conversation that uncovers problems and opportunities unknown to both you and your customer. Until they feel the pain of their problems or the thrill of a solution, they won't see the value.

5. Value is emotionally perceived by the customer. Many salespeople use Return on Investment (ROI) or Total Cost of Ownership (TCO) calculations to illustrate value. While these tools are helpful, they are useless before a customer is emotionally engaged. Customers perceive value based on emotion, and if that perception is absent, they'll find a way to discredit the ROI or TCO calculations.

6. When value is backed by logical justification, it's unstoppable. Once a customer emotionally perceives that your solution is valuable and you can provide logical justification – a favorable ROI or savings in TCO – emotional desire backed by logic becomes the most powerful close in selling.

7. At the emotional core of value are time, frustration, performance, and risk. Most customers will not overcome the pain of changing unless they can save time, remove frustration, perform better – financially or otherwise – or minimize risk. When a salesperson can lead a conversation with all stakeholders to understand which of these carry emotional weight, they can deliver the most valuable solution.