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Before we switched to an Apple Mac platform, every year or so my PC would just quit. I’d downloaded something that didn’t play well with all the other Apps or sometimes what the service bureau referred to as a memory leak would slow it to a crawl. In the knowledge-based economy, being able to stay connected and active digitally is a must. So, I’d start looking for help on-line; “Reboot”, “Delete and reload Window”, ”Download this magic potion”, and so on . Eventually I’d give up in frustration and cart the offending device to my local service shop. “Sure we can fix it. Probably be ready in about three days. Shouldn’t cost more than about $100.”
I like what I do. I am not looking for a surprise three-day vacation. I have client commitments. And, quite frankly, three days of work is worth a heck of a lot more than $100. And this is where it gets interesting. I told them I needed it that afternoon and that I’d readily pay four or five times the price to get it back right away. I was more than willing to pay for the value I would get from minimizing my downtime.
Undoubtedly your business has clients that derive super value from what you do. The message for today's Tuesday Tune-up is to rethink your product and value structure to determine if there is a way to support these clients and to share in the extra value you could provide.
Hotels do it with room upgrades. Airlines do it with premium seating. My PC repair shop did it (reluctantly) with accelerated service. Clients are happy to pay if they are getting outstanding value.
Does this work for B2B as well as B2C? Absolutely. The core difference is that in B2C the ‘value’ is more biased towards emotional benefits and creature comfort. Whereas with B2B the benefits are biased towards logic. (Although do remember that EVERY human decision is driven by emotion and then supported, in varying degrees, by logic.)
To determine how to construct a super value offering, examine how your clients use what you sell. Where do you fit into their value stream? How do you satisfy their needs, wants and desires? Some clients may only purchase the premium offering in emergencies. Others may buy it on a regular basis and build their value stream around it.
Position your high value offering at the top of your value pyramid. Determine what mix of premium value and price you can construct to satisfy sufficient clients to make it worthwhile.
There is absolutely nothing wrong with a very small Super Value market. Chevrolet sells only 40,000 Corvettes a year but the sizzle from the ‘Vette pulls people into the showrooms who buy the 360,000 Cruzes and Malibus. The high value offering you construct can do the same for your Super Value customers.
Thanks for reading,
BTW - In the end I paid the repair shop $200 and had my PC back early the next morning but, truth be told, it was worth so much more to me… This blog is the sixth in a series providing serious ideas that will involve a bit more effort than our last series on ‘easy things to do now’. If you missed them – you can read them all here
Let us know what you think. Questions, comments, complaints and suggestions are always welcome!