Here’s some advice we recently bestowed upon one of our best clients. It’s all about value. There are MANY reasons why price-selling is NOT a good idea. When you offer a discount, you have devalued the product, the company and yourself. The main reasons are that it lowers the confidence of the customer (you don’t believe in what you are selling at the listed price), sets a bad precedence (once you lower the price, there is no going back) and causes distrust (customer doesn’t trust you anymore because you said one price was low, then gave a lower one).
If you have to lower the price, then you haven’t done your job. I promise you that deep discounting is NOT the answer to growing the business. So, I’m just going to go ahead and flat out say it, in no ambiguous terms: Stop focusing on price!
Set a price that allows you to make a reasonable profit…and let that price out to roam the wild.
Show confidence in the price that is provided as a being fair and competitive. Every business is different, and every business has a different value proposition. Concentrate on the unique value proposition that you bring to your customers.
There is tremendous value within your organization, from both its products and its people. BELIEVE IN IT! Pass this belief on to the staff. Live it! Focus on the value that you and your products bring to the customer, how you can solve the customer’s problems with expert customer service and sales, and demonstrate the best you have to offer.
Here are 5 things that you can do to MAKE SALES, GAIN AND KEEP CUSTOMERS without even thinking about pricing.
- Convenience – for both products and process – a variety of products to choose from that are easy and efficient to purchase.
- Availability – meet customer needs for product when they need the product (most important thing to most customers). In fact, customers will pay more for this without question.
- Quality – stand behind the quality of the product (and if it is low quality, then take it back and don’t sell it anymore … or very clearly indicate BEFORE purchase that it is “economy” or “basic”). Customers will automatically pay more when there is an awareness of quality – and the transparency will build trust.
- Confidence in shopping here – no hassles, no dickering, no problems. Everything will be resolved quickly and efficiently in a professional and friendly manner. Easy returns and exchanges with no unreasonable costs or inconvenience. Customers will definitely pay more for this confidence, and a discussion over price won’t be necessary.
- Relationship – and other added values – problem solving, education, industry referrals, interesting features. Customers don’t have a great deal of time, so anything that can help the customer with reaching their goals that is gained through association with you is a great value. Building lasting and extraordinary relationships with customers is priceless.
Concentrating on the items above is more work than just falling back and trying to win a customer with price. But, it’s our job – it’s why they call it “work”. It’s not always easy to make customers see these things, and sometimes, you have to let a customer go. If you stand by your confidence in the value proposition, they will probably return. But, don’t be afraid to lose the sale.
“Fear of losing the sale” is probably your biggest reason for lowering your price. Just let it go, and in the long run your business will grow. I guarantee it. As long as you do your job in identifying and communicating it, there are more customers out there that will appreciate your value.