Value-Added Services are The Quickest Way to Increased Revenues - and Differentiate You From the Pack
Oct 1, 2013
Are You Up-Selling Value-Added Services or Just Piling on Adding Negative Fees?
Austin, Texas: I just read an article detailing how many airlines are starting to add positive value-added services to help raise revenues, instead of merely adding more punishing fees, such as baggage and reservation change fees.
Some airlines are starting to add Wi-Fi, iPads loaded with movies, a service to have your luggage delivered to your hotel or destination to avoid baggage claim, quiet lounges, added leg room seats, etc.
This is in response to customer pushback on many of these negative fees – as people are starting to pack only one suitcase and book further in advance–hurting the revenues of the airlines.
Value-added services can help differentiate your company from others and many clients are willing to pay for them.
We have recently added Next-Day Rush and 3-Day Rush Service to many of our product offerings for those clients that have waited until the last minute to order their trade show promotional items – and many clients are happy to pay for this value-added service. It can turn these marketing executives from a goat into a hero – and it is often worth that added charge for this service.
We started added brand-name imprinted electronics-from companies such as JVC, Samsung, Sony, Skullcandy, iLuv, Garmin and others–for those clients willing to pay for top brand name items that can also be branded with their own logos. This value-added service is targeted to a select group of clients willing to pay more for a better and more well-known brand name to partner with.
What are you doing to value-add your services?
Instead of raising prices across the board, can you charge fees for something extra–maybe faster service, longer warranties, home delivery, weekend or night service, etc?
Think out of the box in creating a second level or tier of service-so that only those that need this service will pay for it – while keeping prices steady for everyone else.
The difference in profit and losses for many companies can be as simple as value-added services.
What type of value-added services can you add to your marketing mix?
After all, most of the airlines make 100% of their profits from fees and value-added services.
Think about what value-added services can do for your bottom line…and then start to add them.