Sunday, March 14, 2010

Make More Money by Selling Benefits Over Features

One of the fundamental principals in business is that customers pay for benefits, not features. A classic example often used is that people don't pay for drills, they pay for holes.

So say your drill bits are made of titanium. Then instead of talking about titanium itself, talk more about how those bits last longer then non-titanium bits, their ability to drill holes through strongest materials, and so on. That's what clients pay for.

I saw a great example of this the other day when I was at Costco with my wife. I felt like a kid in a candy store, noting how those products that were being promoted on benefits were priced so much higher then those other similar products being promoted on features.

Before Costco's "Picture Police" told me stop snapping pictures, I managed to get couple of photos in and I want to share those with you to convey how when benefits are promoted over features, one makes higher profits.

On the first photo above, there pictured are two stacks of onions. Of the two stacks, the stack on the right simply stated "Yellow Onions". To me, honestly, I have no clue what's so special about yellow onions. These yellow onions were selling for roughly 48 cents per pound.

Onions on the left stack were called "Oso Sweet: Like No Other Onions on Earth". Some of the benefits are already part of how they are referred. They then went onto clearly state additional benefits (picture below), which are listed as:

No tears. (For me this alone caught my attention).
Delicious cooked or raw
Great onion flavor
Very sweet & mild
Easy to Digest
Oh-So good for you

Price: $1.10 per pound. Over TWICE the price of yellow onions.

Don't know about you, but I personally hate tearing up whenever I chop onions. It hurts my eyes. Without blinking an eye, I paid the higher price, purchasing the Oso Sweet. And oh what a sweet experience it was, just to chop them alone.

Look ma, no tears!

No comments: