Sunday, May 22, 2011

Lowest Price Or Best Solution?

Everyone wants a bargain. When we shop, we always look for a "good deal" because want to receive maximum value for our money. The key to building your business is to know how your customers define a "bargain."

When we buy a product where the features and benefits from various suppliers are virtually identical, a bargain is almost always measured in terms of low price. When we buy a bag of rice or a box of corn flakes, for most of us the brand makes little difference. We want a low price and will often buy the brand that is on sale.

On the other hand, when we are buying a product or service where we believe quality, reliability or other essentials could vary widely, price becomes secondary. Who shops for the cheapest surgeon?

Many professionals and small business owners make a mistake in trying to compete on the basis of price, when they would be far better off emphasizing the qualities that their customers value most highly.

Everyone can recall choosing a restaurant because of the atmosphere, superior service or extra attention we received. For a special occasion, we may drive many miles and pay extra to be certain we will get a "bargain" in terms of a delightful dinner experience.

To increase your sales, survey your best customers and find out exactly why they buy from you, then emphasize those features or benefits when marketing to new prospects. Most of us hire our attorney, our accountant, dentist and physician for reasons other than low price. Perhaps location and convenience were critical factors, or the recommendation of a trusted friend may have been important. Perhaps they have a specialty we value, or we may have been impressed with their competence.

The same principles apply in selling your services! Find out what your customers want, how they define a "bargain" and focus on THAT, every single time, to every single client.
 
Thanks to Philip E. Humbert, PhD.
 
 

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