Add Value So You Don’t Have to Lower Prices – Retail Marketing Tip #12
Price conscious shoppers are everywhere and yet small businesses, whether they are retailers or service providers, are hard-pressed to meet the low prices offered by huge corporations on everything from oil changes to fresh flowers.
One reason people like to buy “on sale” (and there are many reasons) is because they like to get more for their money. So instead of lowering your price, give them more…
When you add something OF REAL VALUE to your customer, you’ll find that they won’t need a discount in order to make the buying decision. In fact, you’ll absolutely beat the low-price competition on that one sale – and could possibly wrap up a customer for life.
Here is one sample idea (among many) for adding value. This specific idea is for the floral industry, but please, if you’re not a florist keep reading. Think about how you can translate this idea for your own business…
Valentine’s Day is a big opportunity for florists to sell roses, but there is tons of low-price competition: the big box grocery store has them, Sam’s Club has them, the corner convenience mart has them, and the list goes on.
Not to mention the competition from all the other professional florists in town.
So instead of selling roses at a lower price to make yourself stand out of the crowd, a great way to go would be to add something of real Value to the gentlemen buying Valentine’s Day roses for their wives, mothers, or girlfriends.
To do this, you’ve got to keep in mind that what he’s really buying isn’t roses, but a romantic way to say ‘I love you’.
Give everyone who buys a dozen roses for Valentine’s Day a gift certificate redeemable in March for a single rose with a card attached that says, “Because Valentine’s Day Isn’t The Only Day I Love You Enough to Give You Flowers”.
With one simple gesture you’ve made him a romantic hero, not just once (when it was expected), but twice (and the unexpected rose is ULTRA romantic).
Now THAT’S added value.
Bonus to you: you get that guy back in your store one more time and he starts to think of you as the only place to buy flowers for his sweetheart. And while most of the guys will get their single rose and leave, some of them will buy more.
Double bonus to you: when the wife, girlfriend, or mother gets that unexpected single rose and is delighted, thrilled, and charmed at his thoughtfulness, your customer will start thinking about surprising her more often with flowers.
Triple bonus to you: not everyone will actually come in to redeem their gift certificate, but you will have offered the extra value to everyone.
No question about it, finding and delivering something of real value to your customer takes more thought and perhaps more work than slapping a sale sign in your window, but the payback in significantly higher margins and customer loyalty are worth it.
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