Adding Fees that Customers Won't Hate
In many industries, it’s customary to add surcharges and what I am saying is that it may behoove companies to add surcharges if it highlights their brand. Ticket reseller, StubHub, for instance, offers a very strong ticket authenticity guarantee. If something is wrong with your purchased ticket, one call to StubHub and they’ll do everything possible to get you into the event. That’s value. If I were StubHub, I’d add an “insurance” fee that highlights this value as well as generates higher profits.
While some may argue this is nickel and diming customers, I actually think the way that you structure these add-on prices can bolster your brand! In fact, even if your industry does not customarily add surcharge.
Please check out my latest piece for the Harvard Business Review which discusses additional fees and how they can strategically enhance your company’s brand (as well as reap higher profits).
