Have you got a ‘Value Ladder’ in your business?
What am I talking about I might hear you say?
Below are some doodles of what a ‘value ladder’ might look like in your business, but if, for a moment, you visualise that what I’m describing happens in EVERY business, or at least should do, if they want to serve their ideal customers and clients, and have the ability to move up and down their affordability scale, and STILL solve their problems.
Beans. Tins of Beans. We all know what they look like. We probably all know what they taste like. But walk into any supermarket near you and there is usually a 4ft by 6ft section full of tins of beans. And they solve the problem of wanting a tine of beans.
There are Value Beans. The basics and cheapest beans.
There are Own Brand Beans. Slightly more expensive and tastier. But Beans.
There are National Brand Beans. Slightly more expensive again, tastier and more well known. But Beans.
There are the #1 Nationally Known Brand Beans. Slightly more expensive again, tastier and more well known. But still Beans.
And then there are Organic Beans, Beans with Chilli, Beans with Sausages, Four Pack Beans, Multi-Pack Beans. But still Beans.
So if you want Beans, you have a multitude of Beans dependant on what you can afford and yet, you still get Beans on Toast.
So this is how you SHOULD look at the products and services in your business…
Something for FREE
Should be used a taster, or a sample of what you do. Effective in marketing terms and helps get the customer not only aware of you, but into your sales funnel. BUT it must provide some value to the customer, but not solve their problem entirely.
Something for VALUE
This is probably your cheapest product or service. Of good quality and solves a problem, however low(ish) on profit and perhaps not the best quality, but solves a problem for the customer, at least in the short-term.
Something MORE EXPENSIVE
A bit like an ‘own-brand’ tine of Beans. This is what you really offer, has good margin and profit, is your bread and butter and is what your business has been built on.
Something MORE EXPENSIVE STILL
The same as the previous product, but with more value, multiple applications, servicing, membership or value…i.e drives more cash into the business.
Something MOST EXPENSIVE
Your premium product or service with all the bells and whistles on it. A deluxe product or service if you like. Highest profit, highest level of service or product, highest required of craft, workmanship and customer service.
Hopefully you can see this is a very easy model to implement into your products or services. Whilst we can’t and shouldn’t try to sell to everyone, as a small business owner you need to be mindful of the fact that you need to embrace not only your ideal customers and clients, you need to understand that they can’t always afford your top problem solving product or service. But they still want and need your help. Don’t believe me?
Look at how many models of iPhone there are with screen sizes and memory capabilities. The sizes of TV’s. The price differences in clothing in a store. the list can go on…Small businesses solve peoples problems, so just make sure that you’re not missing out on how many people’s problems your solving…
For a FREE call to see how YOU can be solving your ideal customers or clients problem, CLICK HERE