Page 76 - Spring Into Markets
P. 76

The perception of your product or service is important. A high price can still create a perception of good value assuming that your product is of high quality and the presentation, add‐ons and customer service levels are excellent. A £40,000 Mercedes is good value if it is sold for £35,000 — but sold in the right way!
The key to all of this is ‘understanding your customer’...
 • What do they want?
• What do they expect?
• How can you deliver this or (even better) exceed
Creating ‘good value’ can be achieved through enhancing the value of a product purchased either by...
• Reducing the overall cost (i.e. offering the same product but for less money)
• By adding more benefit to the regular purchase price (i.e. offering more for the
same money)
• By strong, good quality, professional presentation of the goods/services
Price is what you pay. Value is what you get.
(Warren Buffet, Investor and Industrialist)
Creating ‘good value’ through reduced cost
Creating good value by offering the same product but for less money through different pricing tactics can help you attract more customers and so maximise profits. There are many different types; here we discuss some of the most common ones...
Different prices
In some instances it may be useful to charge customers who purchase repeatedly and/or who buy in bulk a lower price than normal, as a thank you for their loyalty/custom.
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