In these \u2018cost-of-living\u2019 times I am reminded of one of my first lessons in retail. The difference between price & value.<\/p>\n\n\n\n
They sound similar and considering how often the word \u2018value\u2019 is misused, as in \u2018value retailers\u2019 who are in fact \u2018low price retailers,\u2019 anyone would be excused for thinking they are the same.<\/p>\n\n\n\n
I\u2019ve worked with clients who are the lowest price, and those who definitely are not. But the fact is they both offer \u2018value.\u2019 Where importantly \u2018value\u2019 represents \u2018value for money\u2019 whatever the price.<\/p>\n\n\n\n
If customers, at any price point, perceive \u2018good value for money\u2019 then they will buy. If they see \u2018poor value for money\u2019 then they will not. That\u2019s why customers simply do not always buy the lowest price, from the lowest priced retailers.<\/p>\n\n\n\n
The key question is what adds value? And how does this play out in a customer market where 99% of retailers are not the lowest price. In a \u2018cost-of-living crisis\u2019 how can those 99% attract customers through their doors and convince them to buy?<\/p>\n\n\n\n
What they can\u2019t do is offer the same products that can be bought in low-price competitors, but at a higher price. The only way this works is if you have the advantage of micro-convenience, or local exclusivity. People will pay more for convenience. However, while being on the doorstep may have worked 30 years ago, Amazon has now made convenience available to most people, and for free, whilst making market exclusivity a thing of the past.<\/p>\n\n\n\n
Ask anyone from Toys R Us to Woolworths what it\u2019s like to sell generic products at mid-market prices.<\/p>\n\n\n\n
The \u2018added-value,\u2019 that makes a difference for the 99%, comes in 2 ways.<\/p>\n\n\n\n
Firstly, through selling different brands and versions of familiar products<\/a> that mass market chains don\u2019t have. Brands that offer something different, will translate as something better, for those who appreciate variety in their lives.<\/p>\n\n\n\n Secondly, to create a shopping experience, a brand proposition<\/a>, that surrounds any product with the glow of added-value. The product may be the same as anywhere, but the experience is better. It is better through being more personal, more intimate, more informed, more exciting, more worthy\u2026or whatever \u2018more\u2019 counts as \u2018added-value\u2019 in your customers eyes.<\/p>\n\n\n\n Thankfully customers now buy shopping experiences, and not just products, in many cases. This is an opportunity that all retailers need to grasp with both hands. Because generic retailers selling generic products will go bankrupt.<\/p>\n\n\n\n Independent retailers, local shops, small chains need to create a \u2018brand proposition\u2019 that is appealing and is distinctively theirs. They need to generate unique and irresistible personalities<\/a>.<\/p>\n\n\n\n Understand fully your customers, as a group and as individuals, and what they want from you, as a retailer. In the health sector alone, this could range from more variety & choice of brands to immersive customer support, personalised services, deliveries, click&collect, and home visits. These could all contribute to that \u2018added-value\u2019 distinction & attraction<\/a>.<\/p>\n\n\n\n Develop new collaborations<\/a> to build this proposition. Proactively search for, and partner directly with, local or exclusive new brands<\/a>. Invite new collaborators into your shop space to offer complementary services, treatments, experiences, and added-value.<\/p>\n\n\n\n For sure, in our \u2018cost-of-living\u2019 market there are many customers who can, and will, only buy the lowest price. But there are many others who will pay more for intimacy, inspiration, reassurance, excitement, and integrity from a retailer.<\/p>\n\n\n\n Whether you are the lowest price, or not, never let your customer down, never allow them to fail in your shop. Never be out of stock, never be inconvenient or difficult to shop, if you are the lowest price. Never be unfriendly, ill-informed, dull, dishonest, or rude, if you rely on added-value experiences to attract your customer.<\/p>\n\n\n\n Because whatever price or value level you are, you can never afford to lose the most important commodity you have. The trust of your customer.<\/p>\n\n\n\n In these \u2018cost-of-living\u2019 times I am reminded of one of my first lessons in retail. The difference between price & value. They sound similar and considering how often the word \u2018value\u2019 is misused, as in \u2018value retailers\u2019 who are in fact \u2018low price retailers,\u2019 anyone would be excused for thinking they are the same. I\u2019ve […]<\/p>\n","protected":false},"author":1,"featured_media":20080,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,14,739,776,19,18,840,842,858,856,857,854,855,29,6,841,132],"tags":[978],"class_list":["post-8435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-assortment-structure-planning","category-branding-visual-communication","category-customer-experience","category-customer-service","category-customer-engagement","category-health-beauty","category-meaning-in-the-retail-madness","category-product-suppliers","category-retail","category-retail-businesses","category-retail-management","category-retail-organisations","category-retail-strategy","category-sales-promotions-events","category-store-experience","category-supply-chains","category-value-retailing","tag-retail-retailstrategy-retailexperience-newretail-fashion-price-display-promotions-costofliving-money-value-salespromotion-shopping-merchandising-customerexperience"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/vmunleashed.com\/wp-content\/uploads\/2023\/07\/added-value-propositions-1.png","_links":{"self":[{"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/posts\/8435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/comments?post=8435"}],"version-history":[{"count":10,"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/posts\/8435\/revisions"}],"predecessor-version":[{"id":19687,"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/posts\/8435\/revisions\/19687"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/media\/20080"}],"wp:attachment":[{"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/media?parent=8435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/categories?post=8435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vmunleashed.com\/retailmeaning\/wp-json\/wp\/v2\/tags?post=8435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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