When it comes to your products or services, do you know what sort of value you are offering your customers? If you’ve placed your chips in the ‘best value’ arena, a very competitive price will have a starring role in your value proposition. Your customers are likely to be very sensitive on how much they spend, and want the absolute best deal on offer. As a business proposition, this works well if you’re: Large enough to deliver ‘economies of scale’ so your price is keener than anyone else in the marketplace. In the UK, Weatherspoons Pubs is one of the best examples of a business offering a better price on a pint than practically any other pub chain. You’re one of the first to market and can offer best value at this point in time. Option A can be sustained if you’re a big player with deep pockets. But Option B immediately loses its advantage as soon as new competitors come in offering a cheaper price. And of course, there will always be rival businesses who undercut … [Read more...]
Are you selling 'best value' when you should be offering 'added value'?
When it comes to your products or services, do you know what sort of value you are offering your customers? If you’ve placed your chips in the ‘best value’ arena, a very competitive price will have a starring role in your value proposition. Your customers are likely to be very sensitive on how much they spend, and want the absolute best deal on offer. As a business proposition, this works well if you’re: Large enough to deliver ‘economies of scale’ so your price is keener than anyone else in the marketplace. In the UK, Weatherspoons Pubs is one of the best examples of a business offering a better price on a pint than practically any other pub chain. You’re one of the first to market and can offer best value at this point in time. Option A can be sustained if you’re a big player with deep pockets. But Option B immediately loses its advantage as soon as new competitors come in offering a cheaper price. And of course, there will always be rival businesses who undercut … [Read more...]
