Add Value To Your Business Offering And Enhance Profits
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Summary:
A classic mistake a lot of new businesses make is to solely compete on price. By adding extra features to your offering it is often possible to charge higher prices.
Lets say for example you are a small soft drinks manufacturer. What could you add that would allow you to charge higher prices? One idea might be to add some vitamins to your mixture or if its fruit juice no added sugar. Another idea might be to use premium or novelty packaging.
Have you seen the lolly...
Keywords:
business,business offering,business value,create value,add value
Article Body:
A classic mistake a lot of new businesses make is to solely compete on price. By adding extra features to your offering it is often possible to charge higher prices.
Lets say for example you are a small soft drinks manufacturer. What could you add that would allow you to charge higher prices? One idea might be to add some vitamins to your mixture or if its fruit juice no added sugar. Another idea might be to use premium or novelty packaging.
Have you seen the lolly in a tube which children can open and shut? It is based on the lipstick concept which allows the children to have exactly the right amount protruding for maximum taste. A normal lolly might retail at a few cents whilst this one retails at around a dollar! Same product plus novel packaging equals much higher profit.
Another idea that aroused my interest was when a well known toothpaste manufacturer managed to increase the sales of their product by just increasing the size of the hole! They realised that their customers used to spread a line of toothpaste and when they increased the size of the aperture people carried on spreading the same length not realising that they were using more toothpaste!
Recently have you noticed that cans of beer & juice have wider apertures to allow us to gulp our drink quicker? You can now drink just as easily from a can as you would from a glass. Not all manufacturers have followed this example yet!
Have a look on the Internet and you will find that the best websites offer a lot of information for free. Some of them have a whole host of articles telling you how to do their job! Off course what they are really counting on is the fact that even if they show you how to do it you might not have the time or the inclination to do it! By explaining the processes involved it serves to show their expertise on the issue and means that you are more likely to become a customer.
By adding extra ingredients, improving packaging, offering free information and looking at how easy your product is to use can make all the difference between charging a cut throat price and making a little extra profit.
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