Are You Adding Value?
Added value is a very vague term in today’s marketplace. In a nutshell, it means adding a service or item that enhances the value of a product or service. This is great in theory IF you can do so without adding problems for your business operation in the long run. It is a sales tool as old as commerce itself. It can take many different forms and have differing effects on your operation. If you decide on adding value to your product or service, think it through thoroughly.
Are You Actually Adding Problems?
Competition, weak demand or other business challenges can make adding some freebies or extras an attractive solution. What if you are just adding problems? You are increasing customer expectations. If your business is not prepared to consistently meet those expectations, you may just be adding problems. Perhaps the item or service you offer is not really wanted or needed by the public? An ice scraper with your logo and number will not go over well in Phoenix in August. It may be that your added bonus causes many hours of work for your staff? Wouldn’t that be just adding problems? The last thing you want is a backlash on Yelp or Google reviews
Giving away a trinket to customers to entice a sale is a tactic older than commerce. The balancing act is to determine WHAT to add or give away. To help make that decision, we put together this list of considerations to make:
If you decide on adding value to your product or service, think it through thoroughly.Click to tweet
- The items cost. Does it reduce your profit on a transaction? One suggestion would be to determine a percentage that you can afford to reduce your profit by.
- Is it attractive? Does the value or quality of your added item reflect well on your business? In other words, don’t just give away junk or non-meaningful services.
- What is your goal in offering an added value? Are you trying to close a sale? Perhaps, retaining a customer or gaining a referral from them? Will the addition help you succeed?
These a just a couple of the considerations you should take into account when considering an added value event or program. Here at The Beacon Center we are no stranger to added value. We endeavor to offer great value from the start. We long ago decided to include “added value” in every sale by keeping our prices as low as we can and allowing customers to customize their event package, adding or deleting things to fit their needs and budget. Adding value is a good thing…just make sure what you are adding is actually valuable to your customers.
If you are in need of meeting or event space, visit us at meetingspaceforyou.com. Let us show you the added value we provide every day.