Tips for Establishing a Premium Service at your Small Business

by / Friday, 02 May 2014 / Published in Small Business Financing

financing for small business

A premium service or product can carry a lot of extra appeal for your customers, but in order for a service like this to be successful, there has to be a clear distinguishing factor that sets the premium apart from your regular offerings. People will pay to feel special, and if they perceive something extra that they value in your top tier products, it is likely that you can make these items into great sellers. Still, creating a workable strategy around a new premium product launch takes a lot of effort and coordination. Here are some tips that can help small business owners to make their new premium offerings a success.

Work out your price points with the benefit of market research. The demand that you anticipate for your products will have a major bearing on how you are able to price them. This, combined with the costs of production will determine what kind of profits you can expect to make and what your clients are willing to pay.

Ensure that your service is different enough to merit premium billing. While creating a premium line, it is essential to actually create value that your customers will be attracted to, other wise the whole effort you put in to the product development will be wasted. While some business owners many not be able to develop new products, they can still create a premium package, bundling multiple options or increasing the amount of items that a customer gets when they make a purchase within this special tier.

Create demand for your new products through social media and other marketing techniques. Before releasing your product line, you should build buzz and demand for it among your current client base. For this, social media can be particularly helpful, especially if you are able to put your products in the  hands of influencers before the general release. By giving an influential few the chance to use and comment on your new premium offerings, you can leverage their influence to reach many more people than you could alone, as well as strengthen bonds with this important group of taste-makers. Having promotional material in your location, as well as running ads in advance of your release date can build awareness of your new product so that it starts creating sales on day one.

Make sure that you have a deal with your supplier. It’s not worth it to go through all the trouble of creating a premium item if it is not able to create real return for your business. Negotiating with your supplier needs to happen before you commit to the idea of rolling out a new line. While your idea for a new offering might be solid, if you can’t get the pricing you need to make it work, then don’t bother.


Photo Credit to QUESERIA LA ANTIGUA on Flickr

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