How to Increase Product Value

Product value is the worth of a good or service. The price of a product to a company depends on its production costs. Customers weigh the cost against perceived value. Value seems simple, but it can be complicated. Why does a BMW cost more than a Toyota but less than a Bentley? The biggest difference is the perception of product value. Differences in production costs, technology, marketing, and more also play a role. Cars depreciate quickly because the perception of value fades over time.

What is Product Value?

Product value refers to the worth or usefulness of a product as perceived by customers. It is the benefit that a customer derives from using a product or service, and it is typically a combination of various factors, such as quality, price, features, design, and customer support.

For a product to have value, it must meet the needs and expectations of the customer. This means that the product must solve a problem, make a task easier or more efficient, or provide a desirable experience. The perceived value of a product can vary depending on the customer's individual needs and preferences, as well as the context in which the product is used.

Product value is a critical factor in determining a product's success in the marketplace. Companies that are able to create products with high perceived value are often able to command higher prices and gain a competitive advantage. Conversely, products with low perceived value are likely to struggle in the marketplace and may fail to attract and retain customers.

The Concept of Product Value

The concept of value depends on two aspects according to the Product Board: its absolute and relative value. Absolute value is how well a product meets customers needs, whereas the product in perspective to available alternatives is its relative value.

The primary goal is to ascertain the ideal price point for a product or service. By adding value to your brand, you can build a strong bond between your business and your clients. This bond gives you additional pricing leverage. Here are some pricing concepts based on an article in Small Business Chron:

• Pricing Strategy. Pricing fairly appeals to cost-conscious customers and keeps them coming back. Value-oriented pricing successfully markets a product at a consistent price point.
• Target Market. Setting prices to appeal to a specific target market works to narrow the audience and create marketing messages that specifically appeal to this audience and their perceived price point.
• Message Strategy. Promotional messages accurately convey your value proposition. The distinct attributes that separate your brand from competitors make it stand out from the others.
• Product Development. Knowing your product’s potential market value also helps guide pricing. It influences strategies for product enhancements which can bring additional value to the product or service. Doing so puts you in a position to improve the product’s worth to eventually command higher prices.

How to Increase Product Value

There are several ways to increase a product's value in a business. One way is to improve its quality and features to meet the needs of customers. This can be achieved through research and development to create new and innovative products that are better than the competition. Another way is to provide excellent customer service to enhance the overall experience of using the product. This can be done by offering support, warranties, or guarantees that give customers peace of mind when using the product. Additionally, businesses can increase a product's value by offering it at a competitive price, providing discounts or promotions to encourage sales, and by creating a strong brand image that resonates with customers. By focusing on these key areas, businesses can increase their product's value and attract more customers, leading to greater success and growth.

Increasing product values takes some critical thinking. According to Price Intelligently, here are five easy ways to do it:

• Add a Useful Feature - Inform your target market about different ways of using the product. Target a specific pain point. Discuss lesser known features or services that address real-world issues.
• Consider the Tastes & Preferences of Consumers - The desire to purchase a product is affected by influence, trends, and emotions. A popular personality can add value by endorsing a product. Influencers are a big thing now, especially with Millennials. Likewise, humor or creativity can trigger impulse buying.
• Target Customers by Income - Build your store for the right audience. Adjusting to your customer’s income centers by either going upstream or downstream with your product promotion. Make sure you identify related demographics to understand how best to reach your audience.
• Use Price Comparison - Make smart use of price comparison websites. Compare the level of service. Check for competitor gaps to make your product stand out. Staying updated on price trends can keep you ahead of the competition. Know what your competitors are charging and why.
• Create the Urgency to Purchase - With all of the review tools available and shopping options, customers can sometimes fall into analysis paralysis. Use time tested sales techniques to push customers to the finish line. It’s not to be overly aggressive, it’s to remove doubt and finish the sale.

Using Marketing to Increase Product Value

Good marketing can play a significant role in increasing a product's perceived value by effectively communicating its benefits to potential customers. Here are some ways that good marketing can help increase a product's value:

• Highlighting Unique Features - Effective marketing can help highlight a product's unique features and how they benefit the customer. By emphasizing what sets a product apart from its competitors, marketing can make the product seem more valuable.
• Creating a Strong Brand - A strong brand can help increase a product's perceived value by making it more recognizable and trustworthy. Good marketing can help build a strong brand by creating a consistent image and message across all marketing channels.
• Telling a Story - People are often more likely to buy a product if they can connect with its story or purpose. Good marketing can help tell the story of a product and how it solves a problem or meets a need, making it more valuable to potential customers.
• Demonstrating Social Proof - People are more likely to trust and value a product if they see that others have had a positive experience with it. Good marketing can help demonstrate social proof by highlighting positive reviews or testimonials from satisfied customers.
• Offering Promotions or Incentives - Marketing can help increase a product's perceived value by offering promotions or incentives, such as discounts or free trials. These promotions can make the product seem more valuable by giving customers more for their money.

Overall, good marketing can help increase a product's perceived value by effectively communicating its benefits and building a strong brand image. By doing so, companies can gain a competitive advantage and increase sales.

Encouraging Customers to Purchase Your Product

Now that your product is ready to be sold in the market, you have to take note that for your product to sell and really reach it’s intended target market, your sales team should be able to level up their game to encourage people to purchase your product. Forbes lists some helpful tips to engage your customers:

• Use Technology to Your Advantage- With the technology at hand, it is almost impossible not to use it to your business’ advantage. Before product launching, get the word out on your social buyers and your niche to spark interest and attract conversions.
• Build a Community- Once you’ve put out the word, try building a community of brand advocates who believe in your brand and can share their individual experiences. Having a group of people talk about your brand can attract a brand-new audience to try your products out and make a potential purchase. Keep in mind that having a deep connection with your target market can go a long way.
• Host an Event- Hosting online or offline events can boost engagement among members and non-members. This event would also give you the opportunity to educate people about your product and help them understand how it can help them with their day-to-day.
• Share Exclusive Content/Offers- Have a pre-product launch setup and reward attendees with exclusive discounts, time0limited vouchers, and membership incentives. Sending newsletters and email reminders to them via email or text are also great ways to keep in touch with them. Also make sure that your offers are secure, mobile-friendly, and easily accessible.

Conclusion

In conclusion, increasing product value is all about understanding your customers' needs and desires and delivering a product that exceeds their expectations. By incorporating these tips into your business strategy, you can create a loyal customer base that values your products and is willing to pay a premium for them. Always remember, the key to success is providing value that your customers can't find anywhere else.