The Big Question: How Do You Add Value to your Product or Service? When you add the principle of 'value' to pricing, this is when you build 'elasticity' in the price which means you have greater flexibility in your pricing.Here's an important note about 'value' and how it links to price...The Ultimate Principle On Value And PriceAs long as you provide excellent value - people will flock to your business and pay handsomely for the privilege.Business Owners (myself included) will all too often make the mistake of thinking that price is the main issue in the mind of their prospective customers.But what you are missing is this: if everyone is viewed by the prospect as 'the same' - i.e. they don't take the time or the effort to differentiate themselves from others and add considerable value - then the only way the prospect can choose is based on price.But when you add so much value to your business - substantially more than your competitors - you leave the prospect with little choice.These prospects will pay more than anyone else. Why? Because you've added value.Also, when a customer decides to leave you and go to one of your competitors they'll often say "Your prices/fees are too high". What they are really saying is this..."Your Products or Services are not worth what you charge. I'm just not getting value for money!"There's a big difference!Now sometimes there will be the odd client that leaves based on price despite the value you were offering. This will be the exception as opposed to the rule and that customer was more driven by price than by value. Don't get frightened into lowering your prices because of this odd client.If you've tested your pricing (as discussed in Part 1) and you know which one is more profitable then stick with it.You'll be amazed what you can charge when you start adding value.Here's a great example...We have a client who used to charge an hourly rate for his service and wasn't making much money. He added value to the service and packaged it more as a product and now charges almost 3 times as much and the customer still feels they are getting value for money. (There's that word again...'value').Let's have a look at the effect of value on price...Imagine two different companies selling 2 similar but competing products. Let's say product A is your competitor's product and product B is your product.Let's assume that each product has a similar price and value attached to it.At the moment both products have a maximum value which we will call €100.Your competitor drops the price to €90 so now the only differentiating factor is price. You either drop your price (bad idea!) or increase the value in your productNote: I keep mentioning about adding value. This doesn't necessarily (and often shouldn't) cost anything - it's the value to the customer. What does your customer value? What do they worry about when they buy your product/service? How can you ease that worry? A guarantee for example?Back to our example...So instead of adding value (because this takes a bit of time and thought and effort) you take the easy way out and lower your price to €85.Before long your competitor decides to compete heavily on price and reduces the price to €60. This represents a potential situation with every business and will only lead to you working harder and longer for less money.So how do we make the price more ELASTIC? How can we increase the price range we can charge customers? That's right! We add more VALUE!How To Add More Value WITHOUT Changing Your Business (Or Even The Product Or Service)To Increase Value you need to make your business stand out from the competitors. This is done using 'Marketing Assets' such as;Defining and Stating your Unique Perceived BenefitListing all the Benefits of your product/service (even if they are the same as your competitors)Having An Irresistible OfferWriting A Headline in your Marketing that grabs your Customers AttentionSetting out a Guarantee or Risk Reversal (so that hesitancy to buy because 'what if something goes wrong' is removedSales Barrier DemolitionSocial Proof(All our clients get simple step by step guides on how to create the above Marketing Assets very easily and with little or no cost).One other element that really increases your chances of selling at €100 (or possibly above) is Moments of Truth. We give this strategy to everyone who meets with us together with 2 other proven strategies that will add €€Hundreds (if not €€Thousands) to your business in just a few months.Can you see what you are now doing? By adding value you are 'building' on your product/service whereby at the price of €100 the customer still sees value as your offer is so much better than your competitors (even though ultimately it's a similar product/service).The only thing you need to remember is that you deliver on your added value. If you were to pay more for a product/service you can get cheaper elsewhere then you will expect more. Your customers are no different.And remember, as mentioned in Part 1 - don't be put off by the customer who always demands more for less or they'll leave. It's not about revenue...it's about profit.So that's how you can increase your prices (or maintain your existing prices) and still generate MORE customers and sales by using the Marketing Assets system (plus introducing the Target Market system & Moments Of Truth system) to add value to your business - and all for ZERO cost.Base your pricing on Value rather than on price and you'll be surprised how much more money you will mak
