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What is your Value Proposition ?

When you advertise you should use use the benefits your service offers to entice the customer not the features.

Notice form the examples below, none of these adverts actually advertise their products (features):-

(1) Offers safety conscious parents greater security, at minimum price. (Michelin Tyres)

(2) Offers convenience oriented eaters, fast meals at competitive prices (McDonalds)

(3) Offers dynamic user friendly software at affordable prices for small businesses (Quickbooks)

These are examples of advertising the benefits of their products, not the actual product. The customer is always interested in what the benefits are that you are going to supply, not the actual service.

Notice how each of the above have:-

A benefit
The Target Customer
The price

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  • Maybe rather than simply suggesting a technique used by multi nationals as a good technique for small business owners, you could give us a few examples of how you use these techniques in your own business, and how they have performed?

    I completely agree with you that benefits rather than features are important, but this is an often misunderstood technique, which is often used ineffectively by small businesses.

    The whole benefits and features thing is also seen by almost everyone in the know, as a bit '80's and 90's sales trainer.

    This technique is also often referred to as selling the sizzle, and not the sausage.

  • Hi Gary.
    If I were you, I would be a bit carful with that offer, make sure you put a limit on it, or have a higher price to start with.



    Gary Smith said:

    We start next week with a "Buy one get one free" promotion.
    Every second grass cut will be FOC.
    Works for the double glazing guys and the supermarkets so it must be foolproof.

  • Hi Stuart.
    We have several techniques for making the customer belive that they are getting a better service from our company, therefore we can get a higher ROI. But these are not techniques that I am going to broadcast, because it took us a long time to work them out.





    Stuart said:

    Maybe rather than simply suggesting a technique used by multi nationals as a good technique for small business owners, you could give us a few examples of how you use these techniques in your own business, and how they have performed?

    I completely agree with you that benefits rather than features are important, but this is an often misunderstood technique, which is often used ineffectively by small businesses.

    The whole benefits and features thing is also seen by almost everyone in the know, as a bit '80's and 90's sales trainer.

    This technique is also often referred to as selling the sizzle, and not the sausage.

  • In my local town there are two coffee shops oppisite each other. One is Costa and on the other side is a local firm.
    The coffee in Costa is twice the price and not so good as that of the shop opposite, and doesnt have such a good selection of food items, which again are more expensive.
    So how does Costa manage to attract three times as many customers as the shop opposite?

    Percieved quality???



  • Adrian Noble said:

    In my local town there are two coffee shops oppisite each other. One is Costa and on the other side is a local firm.
    The coffee in Costa is twice the price and not so good as that of the shop opposite, and doesnt have such a good selection of food items, which again are more expensive.
    So how does Costa manage to attract three times as many customers as the shop opposite?

    Percieved quality???


    It's not perceived quality at all, it's sheep-mentality. Most consumers will err towards a global brand name, even if the local farmer's market is cheaper than the supermarket.

    Luckily I'm not in competition with any global brand in my industry, so it's irrelevant.
  • Surely as a gardening/landscaping business, 'customer belief' is a little strange. The customer will see the outcome of your work and base their opinion on that. Whether you use a Stihl factory of kit or nail scissors in the process is irrelevant to what they will assess, which is the garden you have left them with.

  • Paul, You got the answer right. The reason people go to Costa and pay twice the price for coffee rather than walk ten yards and get a better coffee for half the price, is because of the BRAND.
    Every business however small needs a brand. Having a brand breeds customer loyalty (as in the Costa case above),customers are willing to pay extra for your services, you will get more contracts, customers will spend more with you, and they don't mind you putting up prices.



    Paul McNulty said:


    Adrian Noble said:

    In my local town there are two coffee shops oppisite each other. One is Costa and on the other side is a local firm.
    The coffee in Costa is twice the price and not so good as that of the shop opposite, and doesnt have such a good selection of food items, which again are more expensive.
    So how does Costa manage to attract three times as many customers as the shop opposite?

    Percieved quality???


    It's not perceived quality at all, it's sheep-mentality. Most consumers will err towards a global brand name, even if the local farmer's market is cheaper than the supermarket.

    Luckily I'm not in competition with any global brand in my industry, so it's irrelevant.
  • very good

  • But, Adrian, global over local?

    If Mrs Sheep is looking to buy a coffee after dropping Hermione and Mezzanine off to their private school, she will probably go to Costa for a coffee as it's a safe bet. She probably buys from Boden, M&S, Waitrose etc. BIG brands, GLOBAL brands....

    If Mrs Sheep is looking for a PERSONAL service, like a nanny, au pair, dentist, window cleaner, dare I say gardener, she will be looking for something different. The trusted, local person who you can leave the gate code with, and trust around your kids week after week.

    All this business advice is great, but real customers want the personal service. They don't want to pay some one to post on internet forums, whilst the work is being done by his less-qualified employees?

  • Spot on Paul

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