Adding value is not a new concept, but it is something that businesses can learn to implement as a business strategy. People see the value in adding value to their relationships, renovating their homes, and other aspects of their lives. To add value seems like an easy thing to do, but what does “adding value” really mean? At Credico, we define adding value as enhancing or making something better without compromising the integrity of your product or service. In business, applying this mindset to your business strategy takes guts and confidence. This is because you essentially say, “I can improve this product in my business, charge more, or keep the quality the same without lowering the price, no matter the marketplace conditions.”
In business, “discount” does not mean “value.” Often, it’s the exact opposite! When your company does not discount the price of your product, you’re making a declaration that says, this is worth the time, the effort, and the cost to make this item. We are proud of it and understand this item may not be for everyone. We get that. For the customers willing to pay what your product is worth, those are the individuals your business caters to and builds a relationship with.
When businesses add value instead of offering discounts, it leads to more sales and quality relationships with your customers. That’s right! Increasing your prices can lead to more sales. There’s a neuroscience effect that takes place when someone purchases items from luxury brands. It’s called neuromarketing, which the Harvard Business Review defines as measuring physiological and neural signals to understand customers’ motivations, preferences, and decisions, which can then be used to inform creative advertising, product development, pricing, and other marketing strategies. Luxury brands and others that do not offer discounts apply these neuromarketing principles, such as emotional and impulse spending, to attract customers without resorting to discounts.
Neuromarketing is not some kind of business voodoo; instead, it provides essential and empowering information that businesses can use to maintain their position and add value to their products rather than lowering their prices. Neuromarketing is becoming increasingly important in advertising, with the market size valued at $3.3 billion in 2023 alone.
Ultimately, discounting your product undermines the value of your brand. Therefore, it’s crucial never to compromise or negotiate your integrity, as it is the true worth of your brand, regardless of sales volume or market conditions.
Value in business is measured in quality, consistency, and uniqueness. Not all businesses can add value, and not all businesses are YOUR business. Therefore, the unique ways in which businesses add value is how they build connections and strengthen their brand image.
Add Value With Extras
One way businesses can add value is by including a little something extra with a customer’s full-priced purchase. This could be offering a complimentary facial with the purchase of a beauty product or giving a free order of fries with a family meal. By adding something to a customer’s full-priced order, your business communicates appreciation for their support. It shows that you value the customer and the value you add to your products.
Provide Valuable Experiences
When a customer pays or expects to pay full price for something, the experience should be worth it. Instead of discounting your product, add value by providing the best customer experience every time. Your brand should be known for exceptional customer service. Your customer experience is a non-negotiable for any brand that wants longevity and a loyal customer base.
Enhance Value Through Quality
Adding value to your product can involve enhancing its quality. It is important to ensure that your product consistently meets or exceeds customer expectations. Continuously investing in improvements to your product year after year is essential. For example, if it’s clothing, the quality of fabrics and structure should improve or remain consistently excellent. If it’s furniture, it should be able to support lasting memories in your customer’s home for years beyond its expected lifespan. Making necessary improvements and enhancements is how businesses add value.
Value is invaluable, and adding value is setting a standard. Know the difference and know your worth. Always add. Never subtract unless it’s subtracting the things that no longer serve you or add value to your business.