What comes to mind when you hear the word value? It is a word that has many connotations. My dictionary provides definitions such as 1) of relative worth, merit or importance; 2) monetary or material worth, as in commerce or trade. The dictionary uses the word value in the following ways to put it in context: the value of a college education, this piece of land has greatly increased in value, it was sold below its value, a good value for the money.
But what is value, in the context of our industry of decorated apparel and promotional products? If your goal is to provide good value to your customers, you need to first understand how value is measured by your customers. Only then can you know what they believe to be a good value, or not as good a value.
There are promotional products distributors who tell me that they cannot get customers to go for the price of embroidered apparel, so they generally sell screen printed or heat transfer orders most of the time. I do not accept the premise that people will not pay good money for a good product with excellent custom embroidery on it. After all, they pay top retail dollar all day long at the malls and at retail establishments!
No matter if you are the one offering value, or expecting value, there is one key question – how, exactly, is value perceived and measured? After working with people who are buying and selling embroidered goods for more than 20 years, here is what I think value is: Value is the difference between what someone expected to pay and what they were quoted, which would be the market price.
If the customer is expecting to pay $60-70 for a moisture-management golf shirt with a custom logo on it, and you quote a price of $55 per shirt, the customer feels that is an excellent value. You know you have offered a value-rich price when the customers says, "Oh, I thought it would cost more!"
On the flip side, if the price you quoted is above the number the client envisioned for that order, you just exceeded the value potential for that job to your customer. "Oh, there's no way I could spend that." In this case the customer feels this is not a good value, and you may have to work hard to save the order. You could suggest switching out the product to a less costly option. You could offer ways to reduce the embroidery costs by simplifying the design or by doing fewer placements.
How you present a sample product can actually significantly impact the customer's expectation of the value of that product. A shirt that is presented on a nice hanger, without wrinkles, stains or snags sets a much different perceived value than a shirt you pull out of a duffle bag and smooth out on the desk.
When you present a sample and indicate that this product is a personal favorite, one that you often wear yourself, you've just set an expectation of high value for that piece of clothing. Conversely, when you say, "This is the shirt that all the contractors use because they know they will be replacing it pretty often due to the nature of their work," your customer will likely expect that shirt to have a fairly low price point.
Even the environment you are in impacts the perceived value of something. When you order a side of shoestring fries at a Ruth's Chris Steakhouse, you will pay close to $10. When you order a side of fries at McDonald's, it is a dollar item. If you are presenting your embroidered apparel in a less-than-professional setting, it may impact your customers' expectations of what they are willing to spend. If a customer want to meet outside of your office or his, choose a location that is conducive to setting the right value for the order. Meeting in a professional environment is more suitable than at the loading docks of the warehouse.
Value is fickle. It is highly susceptible to influences over which we have complete control. Because we can influence the perceived value of our products by our environment, how we present it, even the context in which we describe it, there is no good reason to not set expectations that are in line with the prices you want to charge for your embroidered apparel and products. If you are not getting good prices for your embroidered apparel and products, it may be time to take an honest look at how you are influencing the expectations of your customers.
Jennifer Cox is president of the National Network of Embroidery Professionals. NNEP members receive personalized marketing consulting designed specifically for their business. To join NNEP today, visit NNEP.net, email Jennifer at hooper@nnep.net, or call 800-866-7396.