Not sure if you have noticed but value has a new meaning.

The other day I saw a billboard touting 99 cent Coca Cola at the local convenience store. That is true, that is the price. What they don’t tell you is that the size of the product has gone down from 20 ounces to 16 ounces. I have also noticed that my magazines and newspapers are a lot thinner these days. In fact, the daily newspaper just increased from 50 cents to 75 cents. In other words a fifty percent increase in price and no corresponding increase in product. (less value)

This weekend I bought a couple of cans of tuna fish. They just didn’t look right. They looked a little thin. I remembered old cans being 6 ounces but maybe I was wrong. Maybe the 5 ounce can in my hand was what it had always been. I checked when I got home, I was right. The old cans were 6 ounces. (less value)

Today I read in the paper that the 20 pound bottle of propane you are refilling at the store might only be getting 15 pounds. For safety, the normal or old fill amount was 18 pounds. For the new value equation they give you less and charge you the same. (less value)

By now I am sure you get my point and I am sure you can cite your own examples but it is clear that firms are giving less and charging the same, if not more. Now I totally get the revenues and costs conversation but input costs are actually down a bit in the last couple of months. Yet, what we actually get is a price increase on a unit price basis.

This would be a good time to take a hard look at your product or service offering and see where you are adding value. I noticed where it was being decreased in my life and I am sure you do to. I am not advocating giving away the store, that wouldn’t be smart. I am encouraging you to make sure you aren’t cutting costs and losing customers along the way. I can tell you the customers are out there. We are busy at FireStarter yet I hear many of my speaking peers bemoan that business is bad and where are the customers.

The customers are where they have always been, seeking value. Give it to them and they will buy from you.

This entry was posted on Tuesday, May 26th, 2009 at 3:24 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.