That’s fixed.
Those words, phrase and sentiments are reassuring. They typically confirm the successful conclusion of a deal done – project a sense of peace-of-mind, and enable clients, consumers and service providers to move on to mutual benefit.
FLUID BACK-DROP
One significant consequence of the COVID-19 pandemic has been widespread apprehension about continuity of supply. That is compounded by sensitivity to the probability of variability in access (trading hours and product/services availability, prices, maintenance and service costs and responsiveness) to specific needs.
Anxiety levels have risen as a result. Overall, expectations have fallen.
Collectively, these factors have impacted customer satisfaction, loyalty, repeat and referral business.
SET PRICES
Prices are not the dominant and overriding forces they have been in the past. In recent times, across the board, owners and managers of businesses have reviewed and, in a significant majority of instances, have increased prices.
No product, service, application, sector or locality is immune. New cars, used vehicles, caravans, swimming pools, dine-in and take-out meals, fashion, electrical appliances, vacation accommodation, hire cars, air-travel, new and established homes. The list goes on.
Interestingly, there is considerable tolerance, even understanding among consuming individuals, families, corporations and public sector entities.
Substantiation and justification for such increments tend to be because of rising supply costs, distribution expenses, trimmed margins and falling net profits. No substantive arguments there.
Early indications of increases in inflation suggest these practices and policies will be extended and broadened.
Strikingly apparent is the absence of competitive forces.
Consumers, clients and businesses are not living in bubbles. They are generally aware, informed, discerning and price-sensitive. The latter factor is a key driver in determining when purchases are made. Expectations are that specials, deals and discounts will inevitably be offered. Therefore the timing of purchases is fundamental.
VALUE PRICING
The fundamental issue in pricing policies are, or should be, value-driven. Comparative measures about cost, margins, profits and sustainable economic viability are secondary considerations.
Indeed, astutely packaged value-pricing is incomparable. It is also satisfying and fulfilling for the purchasers. Those initiatives marginalise, if not make redundant, price-points. Comparative pricing rapidly becomes worthless within a marketing context.
When the dimension of time is introduced to the equation, the value, worth and length of relationships are enhanced.
Several leading global motor vehicle manufacturers have introduced through their national and global dealer networks fixed price service and maintenance costs for set periods of time. Very satisfying. Reassuring. No surprises. Typically affordable. And above all, “budget -able”.
That lead should and could be taken up by countless other entities.
BE HOSPITABLE
Much has been written, said and visually projected about the trials and tribulations being experienced by trading entities in the tourism and hospitality sectors.
Considerable empathy exists throughout society.
People, governments (all three levels) and commerce at large are going to great pains to support local, adversely affected operations which are dependent on tourism-based demand and revenues.
That support is tempered somewhat, when products and services are withdrawn forthwith by businesses, often to comply with government legislation and regulations. Exacerbating the disappointment, frustration, inconvenience and personal cost experienced by unsuspecting and non-determining customers are the practices of denying credits and reimbursements or by extending compensating payments over months, or offering time-limited, inappropriate alternatives to the products and services that were withdrawn after contracts, agreements and deals have been concluded and payments made. What deal?
Such actions come with a price – reputations, loyalty and repeat business.
PRICELESS ACTIONS
By necessity, business models are being refined or totally reconstructed as a consequence of the ravages of the global pandemic.
Resilience is a forlorn hope. Bouncing back to what was may be well-intended. However in most cases it will be misplaced, irrelevant and disadvantageous.
Foremost among the recalibrations will, or should be, pricing policies.
There is no single catch-all answer. Value is typically situational and personal.
Value-pricing has two components:
Price is what is paid.
Value is what customers get.
(and enjoy)
The computations and permutations possible for those variables seem endless. Creativity among business owners, managers and team-members is figuratively boundless.
It’s time to get together, retain an external facilitator and catalyst, and get serious about winning, retaining and sustaining business and marketplace presence based on value-pricing.
Barry Urquhart
Workshop Facilitator
Marketing Focus
M: 041 983 5555
E: urquhart@marketingfocus.net.au