Smarter Pricing: How to capture more value in your market

9. Time-based understanding

Value players offer an obvious trade-off to customers – saving money versus saving time. They frequently use the customer to provide some of their own services. The original self-service supermarkets handed over the task of produce selection to customers and saved staff. IKEA expect customers to make their own choice, locate the flatpack in the warehouse area before the checkout, carry out their own deliveries and assemble the kits to complete the furniture. The company has transferred the time-consuming aspects to the customer. The opportunity is then to serve time-constrained customer segments.

How it works

In a cash-rich, time-poor society, this trade off can be a profitable approach for a brand battling with ...