Value for money is Value for money

I finally succumbed, I’ve signed up to Utility Warehouse. You might recognise the name of the company that provides a range of low cost household utilities.

 

As a small business owner you’re bound to have met at least one of their distributors as they are everywhere.

 

You may be surprised to hear that as a marketer, I’m not a fan of network marketing businesses. They are just not for me, but having a family member become a distributor made me take another look at this particular company.

 

Having recently discovered that we’ve been paying over the odds for many of our household utilities, I wanted to throw this company into the mix to see if we could save some money. I did all the figures and looked at what our household needed, what was available on the market and finally looked at what they were offering.

 

They offered the best value for money for what we wanted, hands down.

 

I must say now that it doesn’t work out this way for everyone and am not being sponsored or paid by Utility Warehouse.

 

For me value for money is value for money whichever way you look at it.

 

“Value for money (VFM) is the term used to assess whether or not an individual has obtained the maximum benefit from the goods and services it acquires within the resources available to it.

 

Some elements may be subjective, difficult to measure, intangible and misunderstood. Judgement is therefore required when considering whether VFM has been satisfactorily achieved or not.

 

It not only measures the cost of goods and services, but also takes account of the mix of quality, cost, resource use, fitness for purpose, timeliness, and convenience to judge whether or not, together, they constitute good value.”

University of Cambridge

As a business owner getting it across that your product/service offers the best value for money in a particular market for a particular type of customer and communicating that can seem quite har

d to do. And going by the definition above, many of the decision making elements are out of your control, people will buy when they are good and ready. However, you need to continuously demonstrate why people should buy from you.

 

Here are some ways to show your audience you offer the best value:

 

Offer a money back guarantee

This usually makes the decision to part with money much easier for the customer as they know they can get it back if they are unhappy with the product or service. However, be prepared to stand by your guarantee!

 

References and Client testimonials

Other people talking about how good you are can only be a plus and testimonials should always feature on your website and marketing materials

 

Accolades and Awards

Like the point above, 3rd party endorsements can help enormously in the decision making process. Despite there being so many awards and competitions for anything you can think of, business owners are often reluctant to enter sometimes because the process is quite daunting and sometimes because they just don’t think they can win. You’ll find that its not all about winning, just being nominated or shortlisted can have a hugely positive effect on your business.

 

Add bonus products/services

Sometimes, what’s on offer is so similar to another company’s offering that the addition of one or two bonus items can tip the scales in your favour. Look at what you can offer that adds value but isn’t too costly or time consuming for your business.

 

Utility Warehouse have their own way of getting the word out about the value they offer. It may not be for everyone but it works for them.

What works for you?

 

Categories : Branding, Challenges, Packaging, positioning, Pricing, Services, Small Business Marketing, Strategic Marketing

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