PURCHASE DECISION: 30% PRICE 60% ADDED VALUE
Research shows that only 30% of a purchase decision is based
on price, whilst 60% is based on added value. (Source: Design
Council - Design in Britain 2004-05). Customers look at a
variety of factors when deciding where to buy.
Just think about your own motives - how often do you buy
something simply because of its low price? Your decision is
more likely to be based on the quality of merchandise, expert
advice, reliability, friendly service, additional privileges, and
perhaps freebies as a clincher.
Of course, most added value becomes apparent, or is offered,
during sales talks, when marketing and in negotiations – you
have to get customers to contact you or walk into your business
premises first, and if they are attracted simply by a ‘cheap’ hook
they may not be the sort of customers you want. You will end
up working for people for whom cost is the bottom line and your
ADDED VALUE CAN BE...
experience and good workmanship counts for little. Furthermore,
a reputation for cheapness makes it very hard to raise your
game, and brings you little respect. There’s a reason why the
words ‘cheap’ and ‘nasty’ are often seen together.
• Experience
• Friendly Service
PREPARATION IS SELDOM WASTED
• Environment
When you pitch your earliest sales you need to radiate the
• Comfort & Ease
confidence that only sound preparation and a faith in your
product and service can bring. Consider first what do I have to
• Speed
offer the customer and what does my sort of customer want
from me? Check the competition’s websites and see which
• Qualification
ones are nearest to your level. There are no prizes for false
modesty here - be honest about your skills, experience and any
• Brand Reputation
advantage you think you have, whilst appreciating that your
rivals may have exaggerated their own. Then think about ways
• Trust & Care
of finding out what customers want. If you can offer them that,
then you should be able to draw them in and charge a good and
• Expertise
fair price.
• Free Advice
And to settle on that price you must first work out your base line
from all your overheads and business costs, then add a
• Trade Knowledge
reasonable wage based on the added value that only you can
offer.
• Extra’s
With the confidence this exercise provides you will no doubt
• Freebies
start a fantastic portfolio website, get good branding, do some
marketing, create a brand of excellence, attract a different type
• Quality
of client (fewer but better) with more interesting needs and
more money to pay higher fees, and when you state your price
• Community
you will be able to do so with authority.
• Craftsmanship
• And more
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