Australian Business Coaching Club Newsletter – One Size does not fit All

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One Size does not fit All

Henry Ford once said about the colour range of his cars “They can have any colour they want, as long as it is black”. His strategy was built around price. Choice was a cost to his business and he wanted to mass produce so he could get economies of scale.

If you have a low price strategy, you may also offer a one size fits all solution as introducing choice also increases cost.

If, however you wish to increase your margins, having a wider range creates value for your customer.

When our son was young, we took him into a Baskin Robins ice cream store where they had 31 flavours. He thought this was fantastic. He took his time going over the range to work out which flavours he would choose. He asked about different combinations. He even sampled a few flavours. In the end, he chose vanilla.
You might think that this proves you don’t need range, but he appreciated the choice. The process of choosing heightened his anticipatory experience. It certainly meant that price was not a factor (although of course he didn’t pay).

When you provide choice, you create value for your buyers, value they are prepared to pay for. How can you repackage what you sell to provide a choice to your buyers? The choice does not have to be in colour, it could also be in level of service at different prices. Often when you have 3 levels of service, people opt for the middle, not the cheapest one, where if you just offer one, they may not take it at all.

Do have a range strategy for your business or do you just offer “one size fits all”?

All you need to do now is to Empower yourself and take action ...

May Your Business Be - As You Plan It.

Dr Greg Chapman - The Business Brain Surgeon
The Australian Business Coaching Club