Top business idea.

ADD SOME VALUE Whatever business you are in, there is a strong  likelihood  that  you have competitors who offer something similar—and it is a racing certainty that there are alternative solutions out there for customers’ problems, as seen from  the customer’s viewpoint.  For instance, someone in the restaurant business might feel complacent because there are no other restaurants in town, but not recognize that a local cinema is competition in the “where shall we go for a night out?” category. Adding value means fi nding something that  will  mark  you out from your  competitors  in  the eyes  of the customers you are hoping  to  attract. What is good value for one person is poor value for another. The idea When Peter Boizot founded PizzaExpress in 1965, pizza was virtually unheard of outside Italy: there were no pizzerias at all in London. Early on, Boizot latched on to the idea of providing something extra—he  started by having  live  jazz bands performing in  the restaurants (many well-known  jazz musicians got their start by playing at  PizzaExpress in  Soho).  Nowadays, the restaurants often have live music, but many host art exhibitions or have other types of live performance. The point is the company is aiming for an “artsy” audience who will enjoy this type of added value. PizzaExpress has a Members’ Club: for a subscription (currently £45 a year) members become  entitled  to four  vouchers a year  for free  menu  items plus  a free  glass of  wine, to free  desserts  when.

 

dining  early,  free  entry to the PizzaExpress Jazz Club, and a £10 gift voucher for every ten meals purchased. Offering  extra value has enabled PizzaExpress to withstand competition,  and to keep  its brand intact  in  the face  of  the “pile ’em high and get ’em out there” approach of American pizza chains. PizzaExpress  is  able  to  charge  more  for  its  pizzas  than  these  big chains, because the added value makes them worth while—the higher prices also deter the kind of downmarket customers PizzaExpress wants to discourage. In practice •  Only offer added value that your target customers will appreciate. •  Price  accordingly—people  do  not  mind  paying  more  if  they  are getting more. •  Ensure  that  what  it  costs to add the value is less than  the premium your  customers will  pay. •  Promote the added value—they  already know  about your product.

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