This is part 6 in an 8-part series on Don Hutson’s 7 Types of Differentiation.
Have you ever noticed that The Rolls Royce Motor Car Company never offers you $10,000 cash back when you buy a new Rolls Royce? Or a zero interest loan? They have no interest in presenting a low budget, cost-saving image. To the contrary, they want you to know that they only make a modest number of their fine Motor Cars per year and that if you want one you had better get your deposit in as soon as possible to get on the list! The exclusivity justifies the price of these unique automobiles in the minds of the consumer.
How we go to market is critical in terms of the messages we send to our targeted buyers. This entire series on differentiation in the Don Hutson Reports to date has been about the choices we must make to differentiate our offering from our competitors. We must either creatively structure our offering in such a way that our price becomes secondary in our negotiations, based upon our customers’ perception of value, or choose a way to project that we are the lowest priced alternative out there! I recommend the former option, not the latter. If you gain business on price, you can lose it on price. Anybody can give their stuff away!
So, the question becomes: How we can craft a value proposition that is more compelling than those of our competitors? And, it can get tricky here, because we need to go to market with a strong, broad-based appeal to our targeted clientele/prospects while at the same time maintaining the capability of revealing specific “value points” to individual prospects whose major buying motives have been identified.
At U. S. Learning, we define the Value Proposition as the perceived value and benefits embedded within an organization’s deliverables in the context of the investment required for their acquisition. Here are five ideas to keep in mind regarding possible approaches:
Listen carefully to your customers’ comments and use these
This article is Part 6 of an eight-article series on the subject of “Differentiation”.
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