Increase the product value
At this time around where most consumer seem very sensitive about the price, more than ever they looking for more value in any product that they consume. Hence increasing benefit can be a reason to increase the price and relatively maintaining or increasing the consumer base.
As we know, value is a combination of price and benefit (and the consumer needs too). There are a lot of ways to increase the value of the product, some of them we use a lot here
- Cut down the price : Give discount is the (relatively) easy to do to instantly increasing the value of the product. But this can hurt the value of the brand if we do it longer than necessary.
- Freebies: BOGOF (buy one get one free), Extrafill, banded with free product also add some additional values. although I believe it will hurt the brand if we do it longer term, some brands here in Indonesia do BOGOF and Extrafill forever (can you name one?)
- Maintaining the price while competitor increase their price is also adding some values. If a brand reducing the content or changing the ingredient with cheaper one to maintain the price. Is that increasing the value of the product? To me this is bit dodgy as we usually “hope” that the consumer will not notice the difference.
There are a many other ways to increase the product value, and usually Communication will play a very important role in increasing the value of the product
I like the idea of skin care product, they start to change the name of the variant with their benefit rather than the fruits. Instead of calling Bengkoang variant, they now call it white glow, instead of avocado they call it smooth & nourishing skin or something like that. It give some sense of innovation to the old boring product.
So if we going to increase the price of our product, what can we do to increase the value of the product?
Provide smaller packs, adding nutritional ingredient, change packaging and label, communicate the “forgotten benefit”, longer guarantee time, toll free support, trainings, two in one, bundled etc etc… the list can go on forever pick one or two…
Cheers
Vidi Nur Marufin
