Last week we tackled the below challenge:
“I would like to increase my prices, in fact I know that I probably should, but I have no idea how without all of my customers leaving“
We reviewed the first of three steps in addressing this issue (adopting a different mindset) last week and this week we will look at the second step (adding more value).
Of course, some businesses are already adding sufficient value in order to justify a price increase. If this is your business, then you could skip this week’s advice. However, even if you are adding sufficient value now, adding even more value will simply mean that you can increase prices by more. Moreover, customers are less likely to leave and take up the services of one of your competitors.
So either way, adding more value is advisable!
In crude terms, the only way to add more value is to do something different (to your competition). Why? Because people pay for value (a purchase is simply an exchange of money and value). The value they pay for is the product or service (the outcome) that they receive.
So, if we add more value (at least some) customers will pay more. Which means that we can increase prices; as people will pay a higher price for a greater amount of value.
Hence my argument that to charge more, in the shape of higher prices, we must add more value when compared to your competition.
This process is often described as ‘meeting the unmet need’. Hence your challenge is to find out what need of your customers is currently NOT BEING MET. Then meet this need – and properly brand, market and sell this to the marketplace – and thus justify higher pricing.
But how? Here are ten of the most effective ways to add more value; ask which of these would meet an unmet need for your customers?
This is your homework for this week! If you can’t see which one applies to your business, just shout…