The Value of Adding Value

coin values

The Value of Adding Value

Many times in a market down turn businesses cut their prices to win the work that is out there, before it gets taken up by the competition.

This is understandable. It is also dangerous. When the market goes down like a sinking ship, the very last thing you want to be doing is be taken down with it.

So how do you avoid this? Well, firstly stop doing what everyone else does! Most businesses do what do what other competing businesses do in their sector. They don’t want to do anything different. It’s obvious why of course. No one likes to change. We all want the security of what we know.

Yet we all know deep down we must change to survive. We must evolve to stay afloat. It isn’t some optional extra. Change without know how is really painful and risky. Hence why businesses even knowing they need to do things differently, find it hard to cope.

After all isn’t it hard enough to keep bringing in the business, to pay the wages and supplies and rent etc.?

We are back to the question as to how to keep your prices up, whilst everyone else is cutting theirs?

Here is the way. The key knowledge is this: You must change your offering not the price. This may not immediately mean much, but in here is your route to survival first, and then future prosperity.

Each customer comes to your business to get satisfaction for the thing they are looking for. It doesn’t matter an iota what you are selling, because every customer wants you to satisfy something they desperately want and need. So first thing is to find out exactly what your customer wants. How? Ask them! When you have that question answered then find out what else they would like, but you do not yet supply to them. When you have that answer, brain storm all the ways you could incorporate or add it to your core offering. You really need to do this with all the key staff in your business. Take some time out and really think about what else you could add to your main product or service you provide your customer.

When you have done this, the next step is to work out ways in which you could add this extra facility on top. Now here is the key. What we are looking to do is find out how to increase the overall value of the total offer, but without the underlying cost to you, increasing by the same proportionate amount. Impossible you will think! Yes, it may at first glance seem that way, and so you need to get your imagination going. Just remember Einstein said imagination took him everywhere. It can for you as well. So here’s a hint to point you in the right direction.

Firstly look at all the ‘soft’ additional things you could add, such as an increase in the service you offer. If you have support staff then work out ways in which they can be used more productively to enhance the underlying product. This will not cost you more because you already own that overhead, but what it will do is increase the perceived value of the product to your customer.

This is the essence of this message. If you can work out any way at all, that gives more value to the customer, on top of the basic product or service offered, then you have achieved two vital success goals.

Firstly you have an offering your competition does not have, and so you won’t be competing on price. That is important alone, but secondly you will have in your hands something exclusive to you, and that increases value immediately. Don’t forget one of the laws of success is rarity has value. So what we have done is stopped you discounting your way to the bottom of the ocean, and helped you not only find a life boat, but also get into it and start rowing.

You see what your customer buys in reality is not necessarily what you are selling. That sounds contradictory of course. What it means though is you need to be very aware that it is your customer’s perception of your offering that induces them to buy not in fact just the ‘bricks and mortar’, ‘nuts and bolts’ and so on. You may need to awaken the brain cells on this, because it is your business’s ability to make an attractive inducing offer to your customer, that makes them buy. It really is not as simple as the basic item or service alone. If this were not true then why are Easter eggs so much smaller than the boxes they come in? You need to  pile on anything that will help your offering sell, but that which does not cost in cash terms very much at all. Here is where your profit margin can really grow in any economic climate.

So start looking at adding value to whatever you offer now. It will pave your way out of any economic down turn, and help you increase sales and profits immediately.

I hope this helps you.

Christopher

Recommended Reading

Related posts:

  1. Collecting Stories And Adding Value To Your Micro-Museum Collecting Stories And Adding Value To Your Micro-Museum Want to build a valuable legacy over time?  Try looking in old homes, under that old dresser, or up in the attic...