08 Mar Added value to you & your Business
Added value to you & your business!
How do you add value to your business?
Firstly, added value in business is the difference between the price of the finished product or service you are offering to the costs involved in making or delivering it!
So, therefore, your added value would be the increase over and above that of the production process and the agreed selling price.
- A celebrity chef in a luxury hotel/restaurant will, once the plate of food has left the kitchen after being created, and when the meal is served and placed on the restaurant table is being served for a higher price, it is substantially more than the cost of the ingredients. In other words, value has now been added.
- A person who has studied extremely hard through many hours and years and having reached the top in their profession is able to charge significantly more because they are the “crème de la crème” in their work.
Building a brand:
- Nike trainers sell for much more than some Hi-tec products, even though their production costs per pair are more than likely pretty similar!
- Apple transformed the entire world of computers by making them easy to use for the unsophisticated person.
- High quality, attentive, personal service will always make the difference between achieving a much higher price over a medium service every time!
- When you offer convenience, customers will often pay more for a product or service straightaway when it is going to save them time and give them what they need and require NOW!
- You can increase your added value by simply increasing the speed in your delivery to the kind of value people are willing to pay for.
- Additional functionality in different versions of software will enable a software developer to sell and therefore charge a higher price if the benefits suit the buyer.
A business that successfully adds value should find that it is able to operate profitably. Why? Remember the definition of adding value: where the selling price is greater than the costs of making the product or delivering the service. By definition, a business that is adding substantial value must also be operating profitably.
Finding ways to add value to the product or service that you are offering is an extremely important task to do in any start-up or small business as well as a hard and brave decision to do. It will make the difference between survival and failure, profit, and loss.
The key benefits to any business, large or small, start-up or established:
- Charging a higher price.
- Creating a point of difference from the competition.
- Protection from competitors trying to steal your customers by charging lower prices.
- Focusing a business more closely on its target market segment.
Successful people know that everybody is very impatient in this fast-moving world we live in. A person did not realise that they wanted your product or service until today, now wants it yesterday. The reason is that people now perceive that there is a direct correlation between the speed and value of your offering. Look at the way Amazon have made it possible to give you next day delivery if you join Amazon Prime! A person or business that will deliver on time or faster offering a higher level of quality, will be considered to be better and more competent, than a person or business who does it at a slow pace or whenever they can get around to doing it.
Do you offer better quality?
Is your quality better than your competitors at the same price?
- Remember quality is whatever your customer says it is. Top-quality management can best be defined as; “finding out what your customer wants and giving it to them faster than your competitors.”
- Quality does not just mean greater durability or excellence in design. Quality refers to an overall package. In my opinion, by giving the customer exactly what they want, require and need. After all, when you fill the customers specific need of benefit that they require, that defines quality in their mind.
- If everyone is offering the same thing, these factors or the product or service we are offering become the basic minimum, or the expected norm in the marketplace.
- If you are wanting to stand out as a person of uniqueness and a person who offers quality, then you must have a “PLUS”. It does not matter what you are doing, what matters is that your customer perceives you and your offerings are superior to that of your competition.
- You will be able to add value to your product or service by simply improving your packaging or design. You may be able to increase its value by simplifying its method of use.
Do you have strong customer service?
- People are predominantly emotional, we are greatly impacted by the warmth, friendliness, cheerfulness, and helpfulness of customer service representatives.
- Companies are using customers service as a primary source of competitive advantage in an extremely fast-changing marketplace.
Do you offer any logical discounts?
- You need to find ways to sell higher and higher volumes of product or services to increased people by drawing them into your business through innovative ideas using promotions.
- You should offer discounts as a way of benefitting your customers in a way that no one is currently doing, it can be a springboard that launches you and your business.
- You can offer group discounts to people who are coming to your workshops.
- Free workshops, incredibly good for businesses that provide training.
- Offer two for one for product or service to your regular customers.
- Have a competition, these can be successful in promoting higher-priced products or services, as the higher the incentive, the more people will enter.
- Free “X” if you buy before “Y” can be great for businesses such as gyms or other monthly paid membership companies. An example would be to offer a personal trainer session with every membership signed up during April 2021.
- Free initial report or service consultation. This offer helps your potential customer feel comfortable with the service you are offering, this way their fears about whether you know your stuff or not and whether they would get on with you will be allayed.
I am sure you must have some exceptionally good ideas of your own that would be good for your business, you just need to start thinking creatively. Life can be FANTASTIC if you really want it to be but you must make it that way.
As Bob Proctor says if you want to get ahead you need to start early when you wake up’ get up. In other words, hit the road running.