The Value Equation II – Value Marketing To Increase Your Profits

August 23, 2011 by  Filed under: Marketing 

Giving your customers or clients more value or perceived value is a sure way to get more business through some clever marketing and getting more business is what we all want.

Here is a simple question you should be asking yourself “What can I add to my existing product or service that will increase the value of it?” by acting on this question you can charge more for your product or service and you’ll sell more.

Giving discounts on a product or service whether it’s 10%, 20% or 30% is an outdated way to increase sales and I believe consumers are becoming wise to it and it does not work as a method for marketing, they know that shops will put their prices up one day so that they can do a percentage sale the next day.

If you give the customer 10% off of a sale that was £100, that will be £10 off of your bottom line, however lets say that you have something that costs you only £5 but if the customer was to buy it elsewhere, it would cost them £10. This would mean that you’ve given your customer extra value, effectively 10% more yet it has cost you less only £5 off of your bottom line, This sale then was really win/win for you and the customer.

Even better if you can give your customers something that cost you nothing like vouchers or discounts on another product or service you’ve given them even better value.

Imagine offsetting the cost of your product or service with discounts from other businesses products or services that were related to yours, businesses that you affiliate to, and imagine this offsetting brings the cost of your service to zero, how good would that be for your client.

If you are a graphic designer that’s just designed a new logo and some flyers for a new client and you’ve affiliated with a printer and a leaflet delivery company and you’ve arranged a discount from those suppliers, now if the new client comes to you and then uses them this effectively reduces the cost of your service because they’ve used you. This is truly a win/ win/ win situation you’ve won because you’ve got a new client, the client wins because they’re getting great value from you and your partners and the businesses you’ve affiliated with win because they get more business too.

There is of course an added benefit here for you too and that is referral marketing when the people you affiliate with you will be able to refer business to you too because their clients or customers are the same as yours.

I’ll end this article by asking, what can you add to your existing product or service that will increase the value of it?

About the Author

Paul Jennings is a Marketing mentor and business coach, he helps entrepreneurs create marketing that works and to achieve their outcomes, visit his site for more tips and resources.

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