Dissecting the Convenience Item - Why Customers Pay More

A convenience item is a product or service that is available at the right place and right time for a customer. These are items that are often sold at a premium price compared to what a customer could purchase the item for if they bought it in advance, at another location, or in a larger quantity.  The end result is that customers are willing to pay more for an item when a business offers the item at a time and/or location that is convenient for them – meaning the value proposition is convenience rather than price.

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Hacking the Dental Referral

My wife has found a dentist she loves.  She doesn’t appreciate him because he makes her teeth whiter or takes away her pain when she has neglected her teeth.  She loves her dentist because he has given her $150 in gift certificates.

When she first walked into Dr. Painter’s dental office, she was told about a dental referral program offered by the practice.  For every person she referred to the dental office, she would receive a $25 gift card to the merchant of her choice.  Having a family of 5, she quickly got her first $100 in gift certificates.  Add in her parents, and she was up to $150 with very little work.

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