Page 78 - Spring Into Markets 2021
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Creating value through added benefit
You can also create good value by offering the customer more for their money, i.e. more products for the same price, rather than reducing the price. Some of these include:
Product bundles
Combine several products in the same package. This can also help to move old stock. Retailers often sell DVDs, videos and CDs using the bundle approach.
Promotional pricing
Promotional pricing is widely used in retailing these days and there are many examples, the most common include:
 BOGOF (buy one get one free)
3 for 2 (three items for the price of two) Buy 2 for £5, £10, etc.
But as with price discounting, promotional pricing should be used wisely. If not, it can result in your business losing money without the expected return. If this method is used too often it will become anticipated and expected by customers who may only buy when the product is on promotion.
 Free products
Another way of adding benefit involves free ‘give­away’ items. This is different to promotions such as ‘buy one get one free’ in that the free product differs from the actual product bought, although there may be a connection — however loose, e.g. a mobile phone retailer may offer a free laptop for those purchasing a certain mobile phone.
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