The Best Characteristics of Value-Added Services Add-on services are not mere frills; they are "value-added" because they are additional services that supplement the core products. They are important to differentiate your product and add a new dimension of value. For example, these services may include additional value added to the charging service, additional support or training services, or some personal assistance that makes using the service easier. Here are some important points to consider:
• They take the core services and add more value to them.
• They will not be part of the basic services.
• Depending on the type of services that you have, they could also give you some more demand for the standard services you have (additive) or reduce demand for your standard products (subtractive). • Sometimes, these add-on services are going to stand alone operationally.
• In other cases, they will turn into add-ons for the customer to put with the basic services.
• These add-ons can provide some operational or administrative synergy among or between the other services.
• These are not merely used to help with diversification purposes, but they are there to add on some more value. When these are done well, these services are going to go a long way in providing some more goodwill for your company when you can offer them free of charge. They will help provide a significant increase to revenue when they are provided along with discounted products or services. Knowledge of these kinds of services, or being able to provide them to the customer will make a big difference.
In addition, value-added services can increase market share by attracting more customers who are willing to pay more for the added service. For example, the company may offer a diagnostic service for a fee, to help customers who are unable to repair the problem themselves. The service may be priced significantly lower than the cost to hire a professional, and is typically provided in the convenience of the customer's home or business.
Many value-added services are provided in the form of add-ons to a customer's purchase. For example, a customer purchases a high-definition television and also has the option of purchasing a set of speakers to use with the television.
Once a business has identified its core competencies, as well as the most important value-added service, the company can then determine the best method for customer delivery. When determining methods for customer delivery, a company needs to consider the core competencies, the competition, and the customer needs.
As mentioned previously, the best value-added services are those with the highest profit margins and the lowest cost profiles. A company with a low-cost profile is able to provide value-added services for a lower price. This allows the company to out-compete other companies because the customers are willing to pay more for the added services.
The company must also consider the competition when determining methods of customer delivery. If a company is going to price its value-added services lower than its competitor, it must consider the possible effect on the company's profit margin. If a company were to offer these services for a lower price than the competition and still maintain a high-profit margin, it would be able to achieve the best value-added services.
Finally, customer needs must be considered. If the customer needs are not met when determining methods of customer delivery, the company may lose the customer. For example, if the customer needs to have the service immediately, but the company is unable to meet that requirement, the company will not be able to provide the value-added service.
Companies that are able to provide the greatest value-added services are also able to acquire a higher market share. These companies are able to produce more profit due to the larger market share, which may lead to better opportunities to grow the business. This may be achieved through mergers, growth, or other means. Contact Us Today for all of your value-added service needs!