Value-Added Selling Technique: Definition & Usage

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  • 0:03 Value-Added Selling
  • 1:49 Dynamic Product Positioning
  • 2:58 Competitive Advantage
  • 4:20 Lesson Summary
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Lesson Transcript
Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

In this lesson, you'll learn how you can use the value-added selling technique to help you gain and keep customers. Learn how you can position your product to make it attractive when using this approach.

Value-Added Selling

In this lesson, you'll learn how you can use the value-added selling technique to help you gain and keep customers. Learn how you can position your product to make it attractive when using this approach.

The value-added selling technique is defined as selling a product by including incentives or other perks. It's probably one you've experienced before. Just think about the last time you were contemplating purchasing one product or service over another. What made you choose the product that you did? Was it because of the extra perks that one product or service had over the other? Many credit card companies, for example, will offer a sign-up bonus, such as a free backpack or a gift card if you sign up and use the card within a certain amount of time.

This technique doesn't always have to mean giving out a free gift. Some companies provide top-notch customer service as a perk. You might have heard some companies say that instead of getting a computer when you call, you'll always be greeted by a live human being. This acts as an incentive to do business with the company.

As an example, imagine that you are selling the waterproof camera to a group of new photographers, people who are just starting out in learning photography as a hobby. One of the perks that your company offers is a photography hotline that customers can call if they have a question. Your company has knowledgeable people on the other end who are able to answer any question they might have. It's an incentive and perk of doing business with your company. If no other camera company offers this service, then those photography newbies that value such a service will most definitely become your customers.

If you are in the business of selling, knowing this technique can translate into more sales and higher profits for you and your company.

Dynamic Product Positioning

In addition to offering perks and incentives, this technique also involves dynamic product positioning to suit the needs of your customer. This means changing the way you describe the benefits of the product in order to attract your particular audience.

For example, imagine again that you are trying to sell a waterproof camera. To attract scuba divers, you can tell them that your camera is waterproof up to a certain depth, such as 500 feet underwater. To attract vacationers you can tell them that they'll be able to use this camera in the rain so they won't miss an awesome photo just because it is raining. Even though you are selling the same camera, you adjust your message according to the needs of your audience.

You highlight the parts of your product that are important to your audience. This includes highlighting any other things your company does that are important to your potential customer. If your company offers a lifetime warranty, you can highlight that if it's important. If your company offers 24/7 customer service, you can mention that, too. Remember, with dynamic product positioning, you focus on different parts of your product and company depending on who you are talking to.

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