Value Added Marketing
Value-Added Strategies: How To Compete Against Price
By: John A. Caslione, Andrew-Ward International, Inc. www.caslione.com The following article by John Caslione shares two examples of value- added strategies from United Parcel Service and British Sugar Ltd, Europe. Executives must learn new tools and strategies to fight against discounting in the marketplace and help grow profits in today’s harsh economic climate. This will help you to maximize your ROI and win sales without resorting to price discounting. It is only a matter of time before more companies acknowledge that they cannot only compete on price or productbased strategy, and must instead forge true value adding relationships with selected customers. This is especially true in the challenging and uncertain business environment with which we are confronted today and we will likely face far into the future. In today's competitive marketplace, successful companies develop Value-Added Strategies to build and sustain important customer-supplier relationships-relationships that rise above the traditional confines of both product and price. They share a common vision: to engage in innovative strategies to enhance their respective long-term profitability in a spirit of what I call "mutual self-interest." Suppliers that engage in real Value-Added Strategy have the ability to charge a premium for their products and services, or as an alternative, do not need to reduce their prices, or reduce them as much as other suppliers, over time, as has been customary in many industries lately. These suppliers often charge a premium because the value they deliver to customers-in the form of increased bottom-line profits-routinely exceeds the price premium charged by high multiples. By having many organizations dedicated to enhancing their profitability-their own as well as those of their strategic suppliers-enlightened customers engaging in such value adding relationships are typically at the forefront of their industries.
By: John A. Caslione, Andrew-Ward International, Inc. www.caslione.com The following article by John Caslione shares two examples of value- added strategies from United Parcel Service and British Sugar Ltd, Europe. Executives must learn new tools and strategies to fight against discounting in the marketplace and help grow profits in today’s harsh economic climate. This will help you to maximize your ROI and win sales without resorting to price discounting. It is only a matter of time before more companies acknowledge that they cannot only compete on price or productbased strategy, and must instead forge true value adding relationships with selected customers. This is especially true in the challenging and uncertain business environment with which we are confronted today and we will likely face far into the future. In today's competitive marketplace, successful companies develop Value-Added Strategies to build and sustain important customer-supplier relationships-relationships that rise above the traditional confines of both product and price. They share a common vision: to engage in innovative strategies to enhance their respective long-term profitability in a spirit of what I call "mutual self-interest." Suppliers that engage in real Value-Added Strategy have the ability to charge a premium for their products and services, or as an alternative, do not need to reduce their prices, or reduce them as much as other suppliers, over time, as has been customary in many industries lately. These suppliers often charge a premium because the value they deliver to customers-in the form of increased bottom-line profits-routinely exceeds the price premium charged by high multiples. By having many organizations dedicated to enhancing their profitability-their own as well as those of their strategic suppliers-enlightened customers engaging in such value adding relationships are typically at the forefront of their industries.