Saturday, February 26, 2011

Value Added Services

Stay Tuned...

As you can tell I had some black olives lately, but is there any difference between the two plates? One plate has pitted olives and the other has sliced ones, the grocery store I go to sells them for JOD 3.35/Kg and JOD 3.9/Kg respectively.

Impressive! What justifies being charged an extra 18% for a sliced olive than the pitted olive. The answer relies in Value Added Services (or VAS). An olive is a core product, yet slicing an olive is an extra service.

If you are a seller, VAS can be utilized so that it gives more value for the money paid by the customer; in other words it might justify the price desired by the seller. On the other hand VAS may be used to present an exclusive component that distinguishes your customer than others or even increase loyalty.

If you are a customer you can also utilize VAS but it depends on your priority as buyer. If all what you care about is the standard feature, look for a product with minimum VAS possible as it will usually be more affordable (Remember the Postal Saving Bank example? No ATM + No Internet Banking = Higher ROI).

SMS, MMS  and GPRS are all popular example of VAS that are widely spread among the telecom industry.
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