Let’s get right into it shall we? Packaging and Value Creation are pretty cool by themselves, but I’m sure by know you’ve figured that if I write about it together it’s best to use it together.
Packaging is done by adding products that are often used together into bundles. It seems simple enough to do but many people mess this concept up at execution. A few rules to remember: bundle 3-5 items/services, create value for the buyer, perception is everything. That being said let’s use an easy example. Car Service Station X sells oil changes for $40, tire rotations for $20, and fluid top offs for $40. Most of their customers don’t understand vehicles well enough to ask for anything other than an oil change. That’s where the packaging comes into play. Alone these products didn’t cause any allure, but together as a Total Car Care Special they’re a hit. It is now easier for the employees to talk about and sell the package for just $99. It sells well because, when the services are explained they are given an air of difficulty but necessity making them necessary for your car.
You’d never buy anything without a value to it. For that reason, selling is a lot like having an argument. You must convince people your item has value, your competitions has less value, they need it now and that your price point is the best. Value creation is the homework you do before to help you win that battle. Whether for a packaging bundle or just for an individual product during value creation you want to: explain all of its attributes, educate on all the benefits of those attributes, and finally just emphasize the direct benefit to the consumer. This works best with products that the public isn’t fully aware of, but in any product it gives you a great sales potential. Let’s assume I’m selling FlingFlongs. I got FlingFlongs for your boat at $499 (don’t bother Googling I made it up). That sales pitch did nothing for the FF.
Now when I create value around it the situation changes. FlingFlongs are the best product on the market for your boat right now. We are talking about a system that helps you rig your ropes, protects your crew by having safety equipment readily available, and can stop you in the event of a collision while docking. You can have yours for just $499. After that pitch my perception is different. My mind is bumping up the price based on everything I think it will do for me. So I am prepared to spend thousands but will snatch it up immediately at your price.
One hell of a combination! Remember as a sales person, our job is to make the sale easy on the customer by streamlining the process. Anytime you can educate them on your products value, package together to create perceived value, or do both go for it!