There’s always room for a premium product
July 27th, 2009 by Ingrid Cliff
Many businesses focus just on cutting costs and providing cheap options in order to win market share. But what they forget is there is always a percentage of the marketplace who are willing to pay for a premium level experience. The psychology of marketing says you should look at what motivates different customers. Premium customers enjoy additional levels of service and support, and find that the value that this brings outweighs the additional cost.
A case in point is Gold Class Cinemas. Videos and DVDs were going to be the death knell of cinemas (or so the doom and gloom merchants said). So rather than cut the costs of a cinema experience, some smart businesses introduced Gold Class cinemas at a premium cost.
They took the cinema experience and worked out how they could add value at each part of the equation.
Seating - These cinemas have only limited numbers of seats, and the seats are of high quality recliner standard rather than traditional seats.
Food - Meals are available to be delivered to the seats (at premium prices) and going “Gold Class” is seen as something special, reserved for special dates, occasions or to impress someone.
Exclusive access – check in is akin to a private club, with separate entry, plush decor and muted tones. No pushing and shoving at the candy bar for Gold Class.
Higher class facilities – bathrooms are of a higher standard than regular rest rooms.
And are they popular even in an economic downturn? Try and get a Gold Class seat to the latest release. Each session is fully booked at least a fortnight in advance!
One tip Bob Bly (one of the greatest living copywriters) gave me was to always provide a Good, Better, Best price option for your clients. Each option should demonstrate the great value you provide, and don’t be afraid to include a premium option.
If something as simple as watching a movie at a cinema can have a premium option – what can you do for your business? Look at each and every step along the process and work out how you can add significantly more value at each stage. Create a good, better, best pricing structure and watch your profits increase.
Until next time
Ingrid Cliff
We put your business into words
This entry was posted on Monday, July 27th, 2009 at 11:32 am and is filed under small business tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
September 11th, 2009 at 2:52 pm
Great headline. If your cookie has a bite-sized action and your reader completes the action, I think two things happen. Their self-confidence goes up (which feels good) and their trust in you increases.