Perceived Offer Value: Lessons from a Local Brewery

A brewery here on the island has recently moved into new, purpose built, fully accessible (hurrah!) premises, and added a restaurant.

However, they’ve made a decision that islanders in general are NOT HAPPY about.

Entrance to their shop is free, but to eat in their restaurant or drink in the bar, you must be a member.

Membership costs ￡12.50 per adult, per year?

When you become a member, you receive 3x 1/3rd pints of their beers, a free embossed goblet, 10% off in the shop and a few other bits and bobs, like a video, leaflet, and email newsletter.

In my view, the way they are presenting the membership offer is contributing to the level of pushback they’re getting.

When you package and present any offer, your aim is that each of your prospective customer types PERCEIVE the offer value is HIGHER than the price.

PROSPECTIVE CUSTOMER TYPES FOR THE BREWERY:

• The beer-drinking islander:

Fans of the brew who live on the Isle of Wight, visiting the brewery regularly to enjoy all that is on offer.

• Beer-drinking holidaymaker:

The island attracts millions of tourists each year, who stay for a few nights or weeks.

This group will visit occasionally, enjoying what's offered one or more times during their stay.

The non beer drinker, local or tourist:

May visit with a friend or partner who is in one of the previous two groups, or purely to enjoy the restaurant and terrace. I'm in this group.

The brewery’s offer FEELS more EXPENSIVE than the price to 2 OUT OF 3 of these customer groups.

It FEELS like you have to pay ￡12.50 just to use the bar and restaurant.

The brewery actually say this, right at the top of their website home page:

“Admission to the restaurant is for members only. The membership fee is ￡12.50 per person”.

So, of course, people are all over social media with comments like:

“I wandered around the shop and was going to go for lunch, but saw you had to pay ￡12.50 to go in the restaurant so I came home.”

Especially because, if you don't drink beer, the current offer delivers ZERO value in exchange for your ￡12.50.

So, even though the y are not my client, I couldn't resist thinking about how I would be advising themn to present the offer if I was consulting with them.

Before I do that, I want to be clear.

This is NOT me complaining about paying the ￡12.50 membership fee.

I have no problem with their decision at all.

It might be related to how alcohol licences are issued.

Perhaps they are obtained more easily for 'members' clubs'.

But they have my support either way.

Eateries with level access and lifts are a rarity here.

They had me at ‘onsite car park’!

I'm already anticipating the beer battered fish and chip lunch, with a latte on the terrace. Lol!

Anyway, I digress...

If the brewery were my client, I’d propose they switch a few things up about how they present this membership fee:?

#1: THE MENU PRICING

On a quick glance, their prices seem to be about 10%-20% lower than another new purpose-built restaurant, just up the road.

(My current fave, Harvey Brown).

I don’t know if they’ve already reduced their prices as subsidised for members, but if so, they’re not telling us that.

So, first thing I’d recommend is that they show the HIGHER prices on the menus they share publicly.

Then, say IN BIG, that members SAVE 10%-20%, whatever the saving is.?

#2: THE EMBOSSED GOBLET

I’d make that free goblet something special, commemorative, and relevant to the island, and I’d introduce a NEW design every year.

That’s an additional revenue stream for the brewery, a regular reminder of the brand for buyers when they use their goblet, and it creates an emotional bond that keeps customers coming back - to the island, to the brand, and to the brewery.

#3: VIP EVENTS

Members could be invited to exclusive preview tasting events when new beers are launched.

#4: MEMBER PERKS AND REWARDS

They could get an exclusive rewards card that gives perks for every x visit or x spend.

As they are already giving 10% off in the shop, adding this option too might cut too deep into the profit, but the aim would be to incentivise repeat visits.

If some of these perks were seasonal, the brewery could increase revenues in days or months that are typically slower by adding a perk with a high perceived value in those months. ?

AFTER ADDING THE ABOVE, THE OFFER HAS A HIGH PERCEIVED VALUE FOR EACH CUSTOMER GROUP:

• PERCEIVED VALUE TO THE BEER-DRINKING ISLANDER

For residents who drink this brand of beer, the perceived value is:

1. the aggregated food savings
2. plus perks,
3. plus owning the exclusive goblet collection
4. and the bragging rights of tasting the new island brews before their beer loving mates on the big island.

• PERCEIVED VALUE TO THE BEER-DRINKING HOLIDAYMAKER

For the, holidaymakers, their perceived value will be:

1. the menu discount when they are visiting
2. plus sampling the local beer
3. plus building a collection of the commemorative branded island goblet souvenirs
4. the prestige of being a member of an island beer brand.

• PERCEIVED VALUE TO THE NON BEER-DRINKING HOLIDAYMAKER

And if you have no interest in beer whatsoever and just want a nice lunch occasionally, you're still getting good value too.

1. the food price savings means the membership fee will pay for itself, over and over,
2. the 10% store discount when you're buying gifts
3. and anything else is a bonus.

Now, EVERYONE feels like they’re getting a great deal.

That’s why, how you package up, present, and COMMUNICATE your offer matters so much.?

How they communicated one part of their offer however, gets a 10/10 from me.

You might remember, I said at the start of this article that membership is ￡12.50 per year.

It's actually ￡12.50 lifetime, with the following caveat:

"To keep your membership active, you must visit the bar or restaurant at least once per year."

Written like that, the statement FEELS like an order, a negative 'taking more', as opposed to, a positive, 'giving more'.

Compare how you feel reading the sentence above, to this next sentence:

"Membership is ￡12.50 per year. Regular customers receive free annual renewals."

I loved that wording. Feels like they're rewarding you for visiting more, don't you think?

For more information about the brewery, visit GODDARDS BREWERY LIMITED

UPDATE: 16th MAY 2023

Last weekend we visited the new premises and became members so we could have lunch in the restaurant.

The beer battered fish and chips were absolutely delicious!

You're given a new members' guide when you sign up which was an enjoyable read through the history of Goddards and the inspiring story of Anthony Goddard, the founder.

We'll be going back for sure!

Want to create, promote and fill your online program or virtual services with dream paying clients?

Inside my Introvert Online Sales Accelerator program ...

1. You will develop your core offering idea: an online program or virtual service that solves a problem you enjoy helping your dream client resolve, and delivers a transformation they’ll be eager to receive...
2. Then you and I will get together to package it up into a delicious offer that FEELS so juicy with a high perceived value to all your prospects.
3. We’ll clearly communicate the value of your offer with compelling copy, so you sell with ease.
4. Launch messaging plans, inspiration and scripts, so your perfect-fit prospects are eager to become your next success story and investing in your program or service becomes their priority.?.
5. Full support and accountability so you bypass the limiting mindset and self-sabotages that block your sales success.

Take the guesswork out of planning, promoting, selling and scaling your offers online. Join the 90-day Introvert Online Sales Accelerator program.