What is Added Value?
Frequently you are competing in a tough marketplace. You are selling something that hundreds or thousands of others are trying to market. Competition is tough and getting tougher as more and more venders flock to the internet to sell their products. You need a foot up on the competition and added value may be the ticket to it.
Added value is a fairly straight forward concept. You take an ordinary product and add something special to it to make you as a seller more attractive than another selling the same item. You see this tactic frequently in the online auction marketplaces because of the stiff competition and low profit margins.
When to use Added Value
The eBay marketplace in particular has a whole host of retailers selling the same items. When they can’t lower their prices any further than their competition they turn to added value. Including a smaller, cheaper item at no cost to the buyer can sweeten the deal for buyers enough to steal them away from a competitor.
The item doesn’t even need to hold any particularly strong value. I have seen sellers gain an advantage over competition by including inexpensive collectible stickers, coupons for repeat purchases, personalized thank you notes, or even silly little drawings on the packaging that entertain the customer and make them feel appreciated. Adding value doesn’t always add cost.
Making a customer feel like they are dealing with a friend rather than a faceless conglomerate can help you improve sales. People want the little guy to win. They’ll root for the underdog and even pay a little extra to see them along.
In situations where you aren’t the sole source of a product you need to stand out to customers. Adding value to your sales can be one of the most financially and emotionally rewarding steps to building a business and a brand.