Adding value for the customer so making more money


Those who add value make money.

You have to work out what the customer really values, not what you think they value, or you value. You have to remove factors the customer does not want to pay extra for and find out what is profitable that they will pay extra for.

Being able to charge more for your product:

Examples could be:

•A money back satisfaction guarantee may get loads more sales.

This is because with it, the customers are happy to risk trying your service and it also shows your confidence and knowledge that it is good.

It should cost you very little. This may be because customers rarely claim it because you provide such a good service, you are keen to find out about things they are not happy with and sort them out, or the item is so cheap that customers do not bother to claim it.

They may even value the guarantee so much, they see the product as a luxury and will pay far far more for your product than the satisfaction guarantee costs you to do. For the wealthy customer, it really differentiates you and they will pay a much higher amount for your higher quality product.

• Price per job instead of hourly rate. Sometimes you will lose out, but on average over many customers you will make more, because of the larger amount you charge for taking you this risk for the customer.
• instant cancellation on contracts. Again you may lose out sometimes, but you are charging more for this service and a percentage of customers will pay far more for this service because of it. So will buy your service because they are not exposed to the risk of being locked into something they do not want.

You can sell both the contract with a longer cancellation period and the one with the shorter cancallation notice period for a higher price.

Being able to sell your product for less, so sales drastically increase and the customers even prefer your new product:

For example thick chips (french fries) may be more expensive to produce as they use more potato. However people may prefer thin ones as there is more surface area to create taste against the tongue, even though they use up more space in the packet so people get less potato. You can then charge less, as you need less ingredients and people will like your chips even more.

With a product or service, if you find out what the customers value, you can often shave off the things they do not value and sell the item for a much cheaper price. You may also find things the customer values, that you can sell for much more than they cost you.

This needs you to work out what the customer wants, not what you want to supply.

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