One store we visited demonstrated an impressive ability to increase profits from the same packaged chicken breasts, with Package 1 selling for an eleven percent premium over package 2.
The difference was pre-slicing the chicken before wrapping it for sale. Same meat and packaging, but an added value by saving you the nuisance of slicing the chicken.
Obviously, some customers making Katsu Chicken might consider the pre-slicing to be worth an extra 40¢/lb.; others will not.
Manufacturers already offer pre-torn lettuce and pre-shredded cheese, so convenience at a premium isn’t a new concept in the grocery store.
But why aren’t you asking how your own business can use a similar model, improving profitability without significantly increasing overhead?
Perhaps, for you, the answer is in Amazon’s Prime Membership, where customers pay $100 annually for “free” shipping.
Or should you look to Pandora’s paid monthly subscription for the convenience of music without commercials?
My computer’s printer is constantly reminding me to buy ink cartridges. And Rotary International puts donations on a monthly fund transfer so members never forget to give them money.
Or there’s the consultant who sells annual retainers, guaranteeing his monthly cashflow, regardless of how much work actually gets done.
In fact, every business owner probably has some product or service that can be made more convenient…for an additional charge.
With car dealerships already washing my car when it’s in for repairs, why not also sell me a car washing contract? Perhaps you can sell monthly memberships expecting, like gyms, that many customers won’t use them.
Or you might be like many restaurants selling sandwiches, chips and a drink as a single unit.
Admittedly, the Great Recession prompted many consumers to change their shopping habits to only buy the cheapest items. But my shopping expedition persuades me there are always those willing to pay extra for a bit of convenience.
Howard Stark (Avengers: End Game) observed; “No amount of money will ever buy you more time.” While true, you probably have customers willing to trade a few cents for the feeling they’ve bought a few minutes.
After all, it’s basically the same cost to you, but the additional returns could be substantial.
With that said, I wish you a week of profitable marketing.
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