Adding value
I was talking to my girlfriend last night about her dance business. She has too many people in each class.I used this method with her. Basically, what would you do to justify doubling your price. She started firing out ideas really quickly. Then I asked why she doesn't do it without changing the price.
The change in mentality was really interesting. When she "had" to add more value the ideas came out easily, with lots of positivity. When she didn't "have" to, she started adding small barriers to new ideas. In the first part, it meant making more money, in the second it meant doing more for the same price. You don't always make more money by increasing your price. However, increasing the value can dramatically impact your profit.
There are so many hidden benefits to adding value. In this case, more people talk, more people want to come, people love it more, you get more trust, more influence and that all adds up to mean that you can make more money.
Here's how:
- Doing all these things for a reasonable price compared to competitors makes people think they are getting a bargain. When its better, its even more of a bargain.
- Products / Services have to be super easy to try out, which means its easy to get people to sign up.
- When people get personalised help / support / training, they think a lot more of the business and love it more.
- When you pack in lots of value into every part of your business, people notice that you care and trust what you are doing. They become fans. Apple is a great example.
- When you do things that other companies aren't doing which works, you gain influence. People look to you for "the next thing", which makes your business more popular.
Posted 4 months ago
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