Wednesday, February 22, 2012

Value-Added is Over-Rated

At some point, you have to commit to a standard of excellence. Whether it is high or low, if you are a business owner, leader, or developer, you must pick a level. Proclaiming high quality standards when price and execution reveal the opposite confuses customers and will inhibit sales.
Some business owners try to get around the common incongruence by offering basic services with value-added options; however, that's confusing too. It's like those old infomercials when the pitchman would add in all kinds of items just to make a sale. Can't you hear it now? "For $19.95 a set of Ginsu knives!"

Value-added has become trite and meaningless.

It would be better to do what you do, obviously assuming you know your clients well enough to know what they need, and offer options without claiming some have more value than others. If the base package meets a basic need, fine. Set a price for it. If base plus additional services meets a greater need, find. Set a price for that too.

For example, as a professional speaker, there is a rate to book me for a keynote or general session. If the conference attendees would benefit from a keynote and a breakout, or a keynote and an emcee, or a keynote, breakout, and follow-up series, there are prices for those. However, the services beyond the keynote are not value-added. They are customized to meet the clients' needs, not an indication of value. If a conference simply needs a keynote, they get a high-value keynote.

 Adding for the sake of trying to hit on something that attracts clients diminishes the value of the service offered. Value-added lost its luster within the last few years. Just provide high value and whatever you do, and you won't have to sound like the infomercial pitchman screeching, "But wait! There's more!"

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