An Education In Value...

Beth will probably kill me for telling this story, but here goes:

We were at a friends' home for brunch over the weekend. Their daughter's placemat is a laminated "photo gallery" of US Presidents. Beth noticed it first:

"That's cute," Beth said. "PJ has a place mat of the United States. He loves it. And I just got one exactly like yours. I tease Phil that it's for him."

"Yeah, Elizabeth really likes it," Debbie responded. "And it was only 69 cents at Walmart."

"How much did you pay?" I interjected looking at Beth.

"I think it was 69 cents, wasn't it Mark?" Debbie replied looking at her husband.

"Beth just bought the exact same placemat for $3.50 at a high-end educational toy store." I glanced at the manufacturers name and laughted. Beth didn't.

I won't get into all the teasing that went on the rest of the night.

The marketing point is that Beth BOUGHT the placemat for five times more than Debbie. And Beth thought she got a good deal -- at the time. That's probably because of the impression the toy store created. It made the placemat seem more educational than functional.

Now, I'm not suggesting you quintuple your prices. I'm not even suggesting you double them. But I do encourage you to ask if you are maximizing your profitability.

Many of my clients feel their product is exactly the same as the competition. In some cases, it really is. So, what can you do to provide your customers with greater value -- without a big cost increase to you? A complimentary consultation? A more comfortable shopping environment? Educational literature? A small gift? A coupon book? A lifetime warranty?

Stretch your imagination -- and your profits.

- Phil Sasso