Business is a competitive field, no matter how you look at it. Anyone’s goal in business should be to perform better than the competition. Of course, there are many ways to go about this, some legitimate and some quite unsavoury. One of the best ways to accomplish this is to drive your product or service’s value up in order to lure more customers to your business.
When we speak of driving the value upward, we’re not necessarily speaking about attaching a higher price tag to your product. In fact, it’s the exact opposite of that. One of the best ways to increase your product/service’s value is to increase the public perception behind it. Pricing your goods lower than the competition will automatically give you a credibility boost.
Some wisdom out there states that actually raising the price of our product adds value in a customer’s eyes. Try that during these tough times, however, and you’ll be out of business quickly.
The trick here is to know how much to drop your price. For example, if your competitor is selling a similar product for $69.99, then you could come in and offer it for, say, $54.99. It still seems within that common range of the product, but it’s significantly lower and will draw more customers to your product.
The danger here would be in dropping it from $69.99 to $29.99. That much of a discount, even if your product is legitimate, would result in not selling many at all to customers who have actually researched the price range. It would stand out as generic; people would think something was wrong with your product.
Playing to your customers’ penny-pinching habits is also a great way to drive up the value of your product or service, and also your business as a whole. Since we’re still in an economic recession, people are always looking for ways to save money. If you’re offering some type of coupon or rebate, you’ll come across as more appealing than the business that’s not.
Little things like these will give you that all-important nudge. Most customers shopping online today are considered to be comparison shoppers, meaning they browse multiple products that are similar and look for which product has the most value for the buck. To that end, there are many ways you can incentivize your product to appeal to customers.
Simply having a warranty on your product will entice customers. A money-back guarantee is also a great way to show that your product has more value than the other guy’s. Depending on your type of business, you could also offer support along with the product and give the customer a direct line to your business. This will also help you to retain customers, so it’s a smart move.
Testimonials are a great way to drive up the value perception. It might seem sleazy, but paying someone to write glowing reviews is just a smart business play. The trick here is to make them as natural as possible no generic stuff.
There are many ways to add value to your product. Just be sure to try these out, as well as others you find along the way.