Value and Cost: Understanding the Relationship Between Transportation and Your BusinessMay 01, 2023
We can learn a lot about cost, value, and experience when it comes to transportation. As consumers, we often have to weigh the cost of our options against their value and ultimately determine what fits our lifestyle and preferences. Not much is different in comparison to structuring your offers or experience in your business. Let’s consider a few transportation examples and think of the type of comparison in your industry:
- A bus or subway may be cheap and get us from A to B, but it puts us in close proximity with strangers, limits our control over the experience, and has fixed start and end points requiring additional steps to get to your destination or even begin it.
- Taxis have more flexibility and the ability to pick you up on your doorstep and drop you off directly in front of your destination - but they are built for volume. Old and maybe even dirty seats, minimal standards of experience, and often difficult to rely on if you schedule one (at least from my experience).
- Uber came in as a disruptive force in the transportation industry. It offset its expenses early on by branding as a “ride-share” over a transportation company. With the novel introduction of an app-based scheduling service, it allowed for real-time information on how long it would take to get a ride, transparency on the price to get there (something lacking in the taxi industry), and a rating system for quality control. Your driver will, however, only wait 5 minutes before they leave you stranded!
- Private car services might be the most expensive, but they have elevated the experience. Think about the barrier to entry with this service: It typically requires a scheduling opportunity to confirm availability and maintain quality as well as a higher price point. But what do you get? A driver that will wait as long as you need because they are typically a results-based operation vs. a time-based operation. The offer to make stops along the way if you need. A driver that shows up in a suit as part of the professionalization in the experience as well as complimentary beverages such as water (or beers if you’re in Mexico on your way to a resort!).
All of these options get you to your destination, but the experience is different. This same principle applies to your business. As a physical therapist or coach, you must consider the value and cost of your services and how they relate to your client's needs and preferences.
For example, you may offer in-person sessions priced at a premium compared to traditional PT clinics because you work with your clients 1:1, but this delivery obviously requires clients to travel to your office and directly trade time for both you and the consumer. While this may be a value driver for some clients, it may not be the BEST value for those who don’t need in-person care and simply need your guidance through the process.
On the other hand, you may offer a digital option that is less expensive than in-person sessions but provide clients with more flexibility and convenience. This may be the better value for clients who have busy schedules or prefer the comfort and privacy of their own homes/gyms and don’t require being on-site to get outcomes.
Ultimately, the key to finding the right balance between value and cost is understanding your client's needs and preferences and offering the specific option that meets those needs. By offering a blend of in-person sessions and digital management, you can provide clients with the flexibility and customization they need to get the most value out of your services.
Now, you need to make a choice. Each transportation model makes money. The mechanism of experience is simply how they justify cost and value. By understanding this relationship between value and cost, you can determine the type of service provider you want to be and the experience you want to deliver. So, take the time to assess your services and pricing and consider how you can balance value and cost to meet the unique needs of your clients.
Interested in learning how to apply this to your clients?