Perception of value
Beauty and value lie in the eyes of the beholder; so put your value proposition out there
People do not buy on price. They buy on perception of value.
Marketing Guru, Dan Kennedy in his ‘Magnetic Marketing’ package says that one of the most important skills a small business owner can learn is to create ‘widgets’.
He is referring to the things you can do to add value to a product or service to change the way it is perceived in the marketplace.
A good place to start is to ask the question; “What is it that everyone dislikes about doing business with any business in my industry?”
An example I frequently go back to is the trades. They have been notorious for not turning up on time; leaving a mess; poor workmanship etc. A great positioning message would be:
- A guarantee to turn up on time
- A guarantee of quality and workmanship
- Has respected people in management and at board level
- (Clean) uniforms.
Of course the benefit needs to be spelled out in all your marketing messages including the scripts your sales team use in answering the phone.
Guarantees are an excellent tool to help you increase the perceived value in the customer’s mind. In many cases it’s simply a matter of articulating what you would do anyway. So if you would refund a client’s money if they were unhappy, or you would take a certain action to ensure your customer is delighted then stating this as a guarantee will allow you to potentially increase price and increase volume.
Bundling is another way to increase perception of value. Do you have products or services that can be bundled together to increase the average sale to the customer?
When people have no way to make an intelligent decision then price is the only way they can differentiate.
How can thus be used in your business?
- Provide free information (articles) on your website
- Sell more to existing customers?
- Raise prices by emphasizing value and benefits
- Sell supporting peripherals to existing customers
Unleash your imagination to reinvent the way your customers perceive you, your products and services and price will be much less of a consideration.