Whatever business you're in, there is a strong likelihood that you've got competitors who provide something similar - and it's a racing certainty that there are option solutions available for customers' problems, as seen from the customer's viewpoint.
For instance, someone in the restaurant business may really feel complacent simply because you will find no other restaurants in town, but not recognize that a nearby cinema is competition in the "where shall we go for a evening out?" category.
Adding value indicates finding something that will mark you out from your competitors in the eyes of the clients you are hoping to attract. What is good value for one person is poor value for an additional.
When Peter Boizot founded PizzaExpress in 1965, pizza was practically unheard of outside Italy: there had been no pizzerias in any way in London. Early on, Boizot latched on to the concept of providing something extra - he started by having live jazz bands performing in the restaurants.
Nowadays, the restaurants frequently have reside music, but numerous host art exhibitions or have other types of reside performance. The point will be the business is aiming for an "artsy" audience who will enjoy this type of added value.
PizzaExpress has a Members' Club: for a subscription members turn out to be entitled to 4 vouchers a year for totally free menu items plus a free glass of wine, to totally free desserts when dining early, free entry towards the PizzaExpress Jazz Club, along with a £10 gift voucher for every ten meals purchased.
Offering extra value has enabled PizzaExpress to withstand competition, and to keep its brand intact in the face of the "pile 'em high and get 'em out there" method of American pizza chains. PizzaExpress is able to charge more for its pizzas than these large chains, because the added value makes them worth while - the higher prices also deter the kind of downmarket clients PizzaExpress desires to discourage.
Only offer added value that your target customers will enjoy. Cost accordingly - individuals do not mind paying more if they're getting more. Make certain that what it expenses to add the value is much less than the premium your customers will pay. Promote the added value - they already know about your product.
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Note: This article was sent to us by: Alan G. Nicholson at 01202011
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