What's the difference between UNDERSELLING and OVERDELIVERY?

by Raydal
9 replies
There are a lot of marketers who boast about over-delivering to their
customers. Yet there are products that you could buy that you think
that you would have paid a lot more for--such a $5 logo on Fiverr.

So the question is: What is really "over-delivery" and what is "under-selling"?
Is a seller over-delivering when he undersells or undersells when he over-delivers?

Let me know what you think.

-Ray Edwards
#difference #overdelivery #underselling
  • Profile picture of the author AaronHarris
    Originally Posted by Raydal View Post

    There are a lot of marketers who boast about over-delivering to their
    customers. Yet there are products that you could buy that you think
    that you would have paid a lot more for--such a $5 logo on Fiverr.

    So the question is: What is really "over-delivery" and what is "under-selling"?
    Is a seller over-delivering when he undersells or undersells when he over-delivers?

    Let me know what you think.

    -Ray Edwards
    Well in my own opinion, over-delivery simply means giving more than what you promised/committed to give in a price that is competitively fair. For example, the current market price of pork meat is $10, the you give an extra 200grams while the customer is paying the $10. That's over-delivery.

    Underselling is when you try to sell your product "under value" or "below the competitor or market's price". Back to the pork, you sell the same pork for $9 per kilo, so basically it is $1 lower than the current price. Then you'll give them the exact 1kilo of the pork you are selling. That's under-selling.

    In the case that you sell the pork for $9 and you add extra 200grams, because he always buy on you that's what you call "rewards" or "customer loyalty".

    Either way, these two strategies can work. It will all depend on the service and the quality of the product you are offering.
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  • Profile picture of the author Raydal
    So as to your definition you are giving the customers more value than
    they paid for but one value comes from the primary product (pork) sold
    for less (underselling) and the other comes from giving "extras" to
    the primary product (over-delivery).

    But whether the extra value comes from the primary product or
    the "bonuses", I guess you'll agree that in both cases you are
    giving more value for their money.

    The question then is: Which has the greatest value in the eyes of
    the prospect: Underselling or Over-delivery? So would a prospect
    prefer the 'discount' on the primary product or be given a valuable
    bonus. This is worth a test.

    Any Warrior who have tested this please share you experience.

    -Ray Edwards
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    • Profile picture of the author Steve B
      To me the two terms have nothing to do with one another - they speak to completely different things. One is a method of selling, the other speaks to what is delivered after the sale is made. Don't confuse the relationship between the two because there is none.

      You can certainly have one without the other, or they can both be incorporated into your approach for marketing and delivering a specific product.

      Each stands alone and is not dependent upon the other.

      Steve
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      • Profile picture of the author Raydal
        Originally Posted by Steve B View Post

        To me the two terms have nothing to do with one another - they speak to completely different things. One is a method of selling, the other speaks to what is delivered after the sale is made. Don't confuse the relationship between the two because there is none.
        I hear you, but I've heard many people say that this seller over-delivered
        because they got more than they expected from a certain product. Then
        I think that they were really saying that the seller should have charged more.
        They were willing to pay more, so in essence the product was "undersold".

        This may seen like splitting hairs but I really want my customers to
        think that I "over-delivered" than them thinking I was "stupid" to sell at such
        a low price.

        -Ray Edwards
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        • Profile picture of the author Steve B
          No doubt about it . . . people confuse the two terms all the time.

          In your last post you're talking about over delivering - giving customers more than what they expected to receive.

          Underselling, to me at least, is completely different. It describes the fact that you didn't make a full-on, in-your-face, hard sell of a product. It's akin to soft-selling in a way. You're making a sales pitch without it seeming like a pitch. It doesn't have to do with the price of a product being too low. That is under-pricing or charging less than would seem to be reasonable for a product.

          Steve
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          • Profile picture of the author Raydal
            Originally Posted by Steve B View Post

            Underselling, to me at least, is completely different. It describes the fact that you didn't make a full-on, in-your-face, hard sell of a product. It's akin to soft-selling in a way. You're making a sales pitch without it seeming like a pitch. It doesn't have to do with the price of a product being too low. That is under-pricing or charging less than would seem to be reasonable for a product.

            Steve
            OK, now I get you and you're right, what I meant was "under-pricing".
            Thanks for the clarification. That's one of the reasons why I defined
            underselling because people use the terms differently.

            -Ray Edwards
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            • Profile picture of the author agmccall
              It is all about expectations. You need to set the expectations up front or your customer will set them for you.

              Therefore, the question is subjective

              al
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            • Profile picture of the author JohnMcCabe
              Originally Posted by Raydal View Post

              The question then is: Which has the greatest value in the eyes of
              the prospect: Underselling or Over-delivery? So would a prospect
              prefer the 'discount' on the primary product or be given a valuable
              bonus. This is worth a test.

              Any Warrior who have tested this please share you experience.

              -Ray Edwards
              It somewhat depends on who that prospect is.

              Consider two prospects:

              A is at the lower end of the market group's economic ladder. Money is tight, and purchasing your product means giving up something else that may be equally desirable.

              B is higher up the ladder economically. Paying your price isn't going to affect his lifestyle either way (although the product itself should).

              A is going to get more value from the discount in most cases.

              B will get more value from a bonus that enhances the original product.

              I've read that one of the main causes of shopping cart abandonment where a field for a coupon code is displayed is people leaving the cart to search for the coupon code. In a scenario like the one described here, it may be a case of people wanting to have their cake and eat it too.
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              • Profile picture of the author Raydal
                Originally Posted by JohnMcCabe View Post

                I've read that one of the main causes of shopping cart abandonment where a field for a coupon code is displayed is people leaving the cart to search for the coupon code. In a scenario like the one described here, it may be a case of people wanting to have their cake and eat it too.
                LOL. I've done that before but never heard that it was a problem for merchants.
                If there is a coupon code I do go and look to see if one is available. Never thought
                of this as a hurdle, but I can understand how it is.

                -Ray Edwards
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