A lesson from Rolls Royce about offering value for money

What’s selling a Rolls Royce got to do with promoting your small business?

I’ll explain in a moment.

I’ve no idea whether this story is true or not, but it’s a great illustration that could help you show potential visitors that you offer exceptional value for money - whether you charge a little or a lot. 

The story goes that Rolls Royce decided to stop exhibiting at car shows and to take a stand at private jet shows instead. As advertising supremo, Rory Sutherland said, “when you’ve been looking at private jets all morning, a Rolls Royce is an impulse buy. It’s like putting the sweets next to the check out”.

Everything’s relative.

People are only prepared to spend what they can afford. 

But is that true? It's not really that simple. 

We don't necessarily spend what we can afford. We might think some things are much better value for money, whereas others with the same income might disagree. 

Part of our job is to show the value we offer, and to show how spending money with us is worthwhile. 

Sometimes it’s good to make a comparison. 

That's what Rolls Royce did. It's called 'price anchoring', using one piece of information to show value. 

Another way to do this is to display three prices in such a way that you either show amazing value for money for a particular 'deal', or you encourage visitors to chose a certain option.

When displayed in this way, many choose the middle price because it seems best value for money. Or you can 'load' the price so the most expensive one sounds best value. It's up to you to decide what you most want to promote, at what price. 

For example: 

One night stay: £75 per person

Three nights stay: £195 per person (£65 per night)

One week stay including champagne and local delicacy welcome box: £495

Or: 

One hours’ bike hire: £25

Two hours’ bike here: £45

Two hours bike here with a guide: £60

The comparison doesn't have to be within your business. It could be something completely different e.g. 

2 hours at xx attraction = of family fun, great memories and relaxation: £10

2 hours at xx shopping mall = frayed nerves, bored children, empty wallets: £000s