Money Talks ~ How Adding Value Can Improve your Cash Flow
Besides exceptional brand awareness, customer service and satisfaction, there are other important factors that keep your customers coming back for more! Adding value to your offerings can make the difference between what your current and potential customers are willing to pay, in addition to improving the cost of producing your products and services.
Aside from competitive pricing, economic value is based on what customers perceive to be valuable, depending on their individual needs; it can be industry specific and may vary depending on your competitors. Your customers may be willing to pay a premium for your products and services, based on their individual benefit in what your company offers. Although you may offer a low price, the dollars may not roll in, due to your competitor’s advantage in adding more value.
If your cash flow looks uncertain, here are a few strategies to help your bottom line:
- Become a Low-Cost Leader – It increases your company’s cash by becoming the industry’s lowest cost provider. This technique can improve utilization of capacity and resources, improve your operations and reduce your input cost of production.
- Provide the Best Cost – It increases your company’s cash through a combination of offering a lower cost and unique value. Customer satisfaction will increase your cash flow when your customers perceive value in your product or service, which you offer at a more competitive price.
- Product or Service Differentiation – This increases your company’s cash through providing unique value that surpasses your competition, other than offering a low price. This technique is based on the supply and demand of your customer’s needs, which is what you can use to leverage your uniqueness.
The PMC Team