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You
may think you have the greatest idea, the best product and the ultimate
service. But how do you really know if it will fly above your competition,
endure finicky customer preferences and survive in an unpredictable
marketplace? There is no guarantee but the best place to start is by testing
your packaging and pricing strategies.
Whether
you provide a service or a physical product, your packaging has a huge
impact on a buyer’s decision to purchase. Given the choice between a
tattered, worn out or dusty package and a bright, shiny, pristine one, which
would you choose? When choosing between a spa that offers fixed-price
packaged services in a quiet, serene and clean environment versus one that
charges separately for each service in a busy, noisy and impersonal
environment the choice and value become very clear. People are paying for
quality and service so all efforts should be made to convey your dedication
to quality and service.
When
thinking about your packaging, at a minimum you should test:
Storage.
How does the packaging stand up under varying temperatures, lighting and
humidity? Let’s face it, first impressions make a big difference.
Shipping.
You want to make sure you put it through the roughest handling possible and
see how it holds up.
Point
of purchase environment. Consider where your customers will find your
product. How will the packaging withstand the temperature and lighting
conditions? Where on the floor will your product be best placed for maximum
visibility and desirability?
Shelf-life.
How long should your product stay on the shelves? How long can it stay in
optimum condition while sitting on the shelf?
To
optimize your packaging strategy, consider involving a few of your target
buyers in some initial market research. Conduct a feedback session for these
factors:
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How
visually appealing is your packaging to your target buyers?
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Does
your package convey the unique characteristics of the product?
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Do
the chosen colors and design elicit positive emotions in your target
buyers?
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Is
your packaging difficult to open?
Once
you have tested your packaging, consider your pricing strategy. Be sure you
have accurately accounted for distributor and wholesaler pricing, marketing
expenses and profits. We do not recommend in engaging in all out pricing
warfare. A better strategy would be to test the value of your product
or service.
Look
at these elements when assessing the value of your product or service:
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Is
your product a better value than what your competitor’s offer? If not,
how can you improve it? If so, are you clearly and persistently
communicating that to your target buyers?
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Are
you getting as much for your product or service as your competitors?
Don’t be afraid of over-pricing yourself out of business. It’s just
as easy to under-price yourself right out of business.
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Instead
consider ways in which you can create a desirability that justifies your
prices. The easiest way to do this is to offer superior customer
service.
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Are
your customers paying for the extra value you offer or are you
under-cutting your profits for fear of being too expensive?
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Are
you adequately conveying the value of your product in your branding and
pricing? For example, if your product or service is intended for an
upscale clientele, then that should be reflected in the pricing, the
advertising and the packaging.
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