 | FOCUS ON VALUE NOT PRICES! | | | | | Giving them more bang for their buck ... | Posted by Nigel Adams on 17/02/2012 @ 08:00 |
Consumers of everything from retail products to business services are becoming more and more value conscious as a result of the economic downturn. This has put downward pressure on prices which has resulted in many businesses cutting prices in order to remain competitive and maintain market share ...
 discounting only compromises your profit margins so think about adding value instead
The customers of your business are in a money-saving mood but they aren't willing to sacrifice on quality. This presents business owners with a new challenge - to maintain a quality product or service but offer more value to customers at the same time.
Your business can take advantage of this focus on quality by minimising price reductions and instead offer more "value added" to customers. Since customers today are more focused on value for money you must make them feel like they have got more "bang for their buck".
Take a management consultancy firm as an example. Instead of reducing their prices, they could offer more "value added" services free of charge to customers by offering a free 2-hour business strategy health-check. This health check could consist of a review of the current business plan, as well as sales and marketing activities with a report being developed showing the business which areas to focus on throughout the rest of the year.
The customer has now received extra value for the same price that they paid last year. They'll feel they have received value for money and the consultancy firm has managed to avoid cutting prices. Therefore the business and the customer both benefit from the value-added approach.
As customers have become more focused on the value they receive, more and more businesses have implemented this value added approach. Tesco have done it by offering mobile phone services, car insurance and financial services in store. 3 mobile have done it by offering unlimited data usage plans to mobile phone packages.
Now it is your turn to give your customers a little value added extra and avoid cutting your prices at the same time! Call me on +44 (0) 1908 219100 if you'd like to know more.
Until next time ... 
NIGEL ADAMS
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 | MANAGING DIRECTOR Nigel formed Ad Valorem in April 2001 with a commitment to working with companies of all sizes, just the one common goal though the ambition to succeed and make the best of every opportunity that is presented.
Nigels strengths are thinking outside the box and using his practical and down-to-earth approach to help business owners maximise their potential. He will tell you what you need to know but not baffle you with accounting jargon.
Ad Valorem continues to grow and still fosters the family atmosphere with both its team and clients that is core to his business vision.
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