September 23, 2010

ASK ROY Query on Value-Based Packages

Here is an e-mailI recieved on my Reader Connect Line from a reader who was looking for some clarification and assistance in execution.

“Hello Roy,
As a young business owner (26) with little formal business training I read your book with ease and excitement.

My business, CJSmusic, is a service that offers music lessons on-line through a Web camera. We also offer audio branding and jingles for commercial use. If you need more details just ask, but I want to keep this email to you short.
My question is, after reading your book, how can I package a family plan (two or more people taking lessons at the same time) without having to give a discount?
Thank you in advanced for taking the time to answer this. I’m looking forward to your comments and suggestions.——Jordan Stevens”

This was my answer:
“Jordan,
Here are some thoughts about your packaging question:

> check my Marketing Blog Articles on the topic. They will provide more detail on the matter.
> the theme is that to avoid the need to discount, you have to ADD VALUE that commands a premium price.
> the challenge you have is to add value around your anchor product of a “music lesson”.
> what value? Think about what your customers would value over and above the lessons themselves. What ‘secrets’ do they have that would allow you to create a package bigger than a lesson.
> the added value elements of your package should relate to music obviously. What non-lesson components can you add that would resonate with them?
> I play the guitar, and some added value elements that might interest me are: access to an inventory of song sheet music for a special price (go cut a deal with a supplier), a DVD on my favorite singer, (go cut a deal with a supplier) a follow-up lesson with you every 6 months (your time), cutting a CD of my music after a year of lessons.
> brand it as a unique package reflecting the total value offered.”

Creating Value Packages is all about adding components to your basic product offereing that will make your customer sit up and take notice. It will create a unique niche for you and separate your business from the competitive herd.

Cheers,
Roy Osing
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Posted 9.23.10 at 07:00 am by Roy Osing | Read Comments (0) | Leave a Comment