Sunday, July 13, 2008

Discounting vs. Value-added

My clients know that I'm NOT a fan of discounting, for several reasons. One, people come to expect it; they not only want discounts all the time, you continually have to offer deeper and deeper discounts to keep them "interested." Two, discounting, to me, sends the subliminal message that your products or services aren't "worth what you're asking."

Instead, I like to focus on value-added. This is a key part to telling your "story" to clients and prospects. With value-added, you don't discount, but instead offer one or more tangible "extras' to help make a prospect feel good about buying your product or service (at full price). An example would be the Wine Country Inn's new series of food and wine events, which will kick-off in early August. Guests come to the Wine Country Inn from all over the world to experience the Napa Valley's beauty, wine, and food. Why not offer several small, fun events at the Inn itself, rather than let guests wander around on their own? These "extras' will, over time, make a significant difference in (in this case) occupancy; if given the choice between two beautiful Napa Valley properties, wouldn't you be more likely to select the one holding a paella party (see pic)? Or to picnic in a Napa Valley vineyard and taste the grapes that go into a fantastic Napa Valley cab? I know I would!

Executing a value-added strategy takes energy, creativity, and commitment. But the results over time are well worth the effort. To learn about ways your company can add value, feel free to contact me to brainstorm.

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