Thursday, May 19, 2005

The Price Game

Ask yourself a question. What business are you loyal to and why? When I have asked this simple question to thousands of my students, I hear statements like: "They remember my name", "They listen". "They know what I want and need", "They go the extra mile". Not a single person has said "They had the lowest price!" Amazing isn't it?

It would seem from this informal survey that the key to loyal and repeat customers who recommend you to their friends and family is NOT the lowest price. Why as sales people do we spend so much energy in the "lowest price" game? Because that is what it is...A game. The customer comes in and says "Give me your lowest price!" And if you fall into their gameplan they have derailed you from your real job which is to build value.

Think about it...If you offer the "lowest price" isn't there somebody somewhere that can offer a LOWER price? Probably. And there is no way to win with a price shopper. They will leave you the minute that someone else offers a lower price. Customers play the price game because they don't want to feel stupid.

So start building value in your business, in your product and most importantly in doing business with you. Find out what your customer needs. Really listen to them. They don't need the lowest price! They do need a fair price!

Show them what they get when they buy "you". What services are you able to provide that sets you apart? Give them the kind of service that they can brag to their friends about: "My sales consultant makes my service appointments for me! I don't ever have wait for the service advisor to get to me!" My sales consultant set up my TV for me without an extra charge!" "My insurance sales consultant remembers my birthday with a hand written card."

And remember everyone loses when you play the price game. Everyone wins when you build value!