Harnessing the Power of ‘Soft Cost’… 

What is ‘soft cost’? Well, let me define it for you … and then give you some simple and compelling examples of how ‘soft cost’ options can RAPIDLY and INEXPENSIVELY increase your acquisition of new business. Firstly, the definition… 

‘Soft Cost’ refers to something that you provide or produce that has a relatively high perceived VALUE … but costs little to produce.

It is something you can offer a prospect, or you can add it as a sale … a ‘sweetener’ to the pot if you like … which compels the prospect to come to you. 

In its simple but effective form, it could be a ‘two for one’ offer from your local pizza store. The additional ‘perceived’ value of that second pizza to you is what? … £14?. But in reality what is the real cost … the ‘hard cost’ … to the pizza parlour of providing the second pizza? Maybe £4. You see, when the first pizza is sold, it has not only the ingredient costs in there … but has all the overheads, the labour costs, delivery costs and advertising costs factored in. It may actually COST … in hard money terms, say £8 to sell. 

The second pizza is just a bit of flour, water, some cheese and some salami. And a tiny bit of extra labour. It still LOOKS like the £14 version … but costs relatively pennies. So it is a classic ‘soft cost’ option for the pizza parlour to use as a marketing tool.