Smarter Pricing: How to capture more value in your market

10. Add services

The discounter can tempt customers with low prices by cutting out services. An example is Lidl, one of the top ten food retailers in Germany, which has a philosophy that you only pay for what you get. This means that customers pay for carrier bags, have no shopping baskets on offer and must pay a deposit for trolleys. If the discounters strip out service, the competitive answer is to add differentiating services.

How it works

Porsche is the leading motor industry brand by margin, earning a higher return per vehicle than any other marque. In the face of lower-cost sports cars from other respected car companies, what benefits could Porsche offer to secure the loyalty of their drivers? Understanding emotional anxieties can uncover ...