Just take a moment to think about the toiletries you use. Do you always go in for the cheapest brand available? Always?
What are the factors that make you buy a deodorant/ soap that is slightly higher priced than another brand?
The answer lies in two words : “Perceived Value”.
You feel that the brand you use serves you better than other brands. So, you are willing to pay a little extra to buy it.
The Perceived Value of various products and services is different for different target audiences. The key is to offer something that increases the “usefulness” of your product. This increases its perceived value.
Consider two shops retailing the same brands of clothes.
One shop has courteous attendants who are willing to show you what they have and help you to take decisions regarding style, fit etc. They are also willing to make minor alterations to ensure the clothes fit you perfectly.
The second shop has the same clothes on shelves. You pick what you want and pay for it at the counter. End of purchase experience.
Which shop are you more likely to patronize?
Shop1? Because of the higher “value” they offer you. Did you notice that all this while, we didn’t mention price even once?
Here, the “Value” isn’t about the money spent. It is beyond that.
Find out what you can do to increase the perceived value your customers get from you.
Here are a few suggestions:
- Free bonuses / gifts
- Regular newsletters providing relevant information
- Technical help both initially and well after the sale
- Access to product related information that is not available elsewhere
- Informative help at the time of decision making
- Making your packaging re-usable even after your product is exhausted
- More quantity than others provide
- Discounted rates on purchases higher than a certain value.
- Additional services like free gift wrapping.
- Maintenance provisions
These are just a few suggestions. The key is to feel free to innovate and deliver the maximum possible “value” to your customers.
When you offer the best “Value” for the money they pay, you can be sure they’ll keep coming back to you! Plus, they’ll recommend you to others! How’s that for added value?