When you trade on the ‘less expensive’ value proposition, you’re generally diminishing your profit margin, and/or giving up features and quality.
That’s OK for a number of reasons. One, there’s always a market for something being less expensive. Two, there’s a strong chance you can release something that’s hyper-focused on only the product’s most important features and benefits. This means your product or service can be less, because it has less bloat, and is less costly to produce/provide than the brand name version. Overall product quality isn’t impacted, and customers are thrilled with your disruption to the marketplace.
This is one reason it’s so key to know who your customers are, and what really matters to them from a features and benefits point of view.
One of the biggest challenges in leveraging the ‘less expensive’ value proposition is that there can be an inherent assumption of the thing being lower quality. This is especially true in consumer packaged goods, where your products are side by side, and branding is everything.
Just being your product sells for less doesn’t mean it’s worse, and you need to make sure your audience doesn’t think it is. How? Invest in quality of your creative. There is data suggesting that next to brand size, quality of creative is one of the most important things when it comes to advertising profitability. Just because you’re producing a lower cost version of something doesn’t mean it has to look cheap (unless you’re using simplified packaging to stand out as the “cheaper and close enough” option – which is a common tactic for grocery store “in-house” brands).
Another idea you can leverage: lean into the fact that you’re less expensive, and market on the fact, but tell the story of why. For example, it might be because the current market doesn’t permit everyone having equal access to a particular product or service. Ross Dress for Less is a great example of a brand banking on high-quality, and low prices.
Ultimately, your content strategy is how you’ll win. Leverage:
- Landing pages
- Blog posts
- Social media
These are great go-to content channels to shout your story loud and clear. Use “social proof” and feedback from your customers that help reinforce that paying less doesn’t mean getting less.