Then businesses who wanted to take market share or establish themselves in a crowded market came up with a cunning plan.
They offered more for less.
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| Most now expect to get more for paying less |
So for the best part of 20 years consumers and that includes business owners have expected to get more and pay less.
If your struggling, then this strategy can buy you time and help re-engage a customer base which has recently been tempted away by a competitor.
Offering more for less usually can't be maintained indefinitely without impacting on margin or reducing input costs - but many do try.
Some businesses with strong brands can still charge more for offering more, but even these have high perceived value entry points that essentially are specific examples of the more for less concept.
The best approach is to include all the options - so think about the expectations of your customers and sell to them appropriately.
For consumers with limited purchasing power try a lower price for less features and benefits - but still a valid solution
For aggressive deal seekers go for the more features and benefits for less cost and then migrate them to a more for the same cost as they become advocates of your business.
Most companies fall into the middle ground of offering the same benefits for the same cost and then discount when they have to.
Not a great position in the long-term.
I always offer more for the price I quote. I always give an extra article, or additional marketing idea away with the overall package. So the price stays the same but I always over deliver.
Now that's because as a consultant all I have is time - very little bought out costs.
If you manufacture something and are driven by volume and margin you should always aim for your product mix to have some which cost more for more features or benefits, but also have some which offer more of the bells and whistles for less cost.
Image courtesy of Mister G C at FreeDigitalPhotos.net
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