In my travels I regularly hear words to the effect of: “I am tired of being hacked off with mediocre service from the big companies and next time I am going to buy local and pay more so that I get what I want.”
You don’t want customers who are buying on price/cost/features – in the long run they will do you no favours. Low price means that people buy on price.
High prices mean that people buy on VALUE.
So, how do you create value?
When people buy from you, what is the value that you are offering? Most of us obsess about selling the features but please stop and reconsider. What is the value that you are giving the client?
You must think value… value… value. What is left AFTER I am gone?
How am I able to add value to the customer/client? What can I do to do more than simply deliver the product/service?
15 comments:
It is about the price. Try running a shop.
All is fair in love and war etc. Maybe you have the wrong shop at the wrong time in the wrong place?
Tomo
Answer from elsewhere on this blog: blow them away with legendary service!
No it is not about the price. You think it is about the price but you are just failing to find the sweet spot for your customers.
Step outside of the situation. You think it is about the rpice but you are wrong. Just like everyone else!
Start running a different race. Don't worry about the fish you don't catch.
Pete E
Once you could use the BA vs Ryaniar argument but who would go BA? A reputation is destroyed so quickly.
Jessie
BLOW THEIR SOCKS OFF WITH YOUR SERVICE
Richard
Value is in the mind of the customer! Figure out what they want.
Tom
Robert - I don't disagree with what you say; although I think the key is to understand the perception of what is good value in the eyes of the target market and the key drivers for buying decisions.
Taking the shop situation, it can also be about the type of merchandise on offer and the shopping experience. The shopping experience will partly be down to the environment of the shop (including attitude of staff), but will also be down to other factors such as the type of neighbouring shops and ease of getting there. The "worse" the shopping experience, the more likely that price will become a key driver for people to buy.
Value can be real and perceived. Reputation can be an important factor in buying decisions as it can give kudos and/or a feeling of security which allows prices to be increased - even though there may in reality be more cost effective/ better quality alternatives.
What happens when reputations are damaged? Well I've just read an article that said that Toyota have had to use price incentives to maintain market share in the US following their recent problems. It's a bit like the shop example!
David
David
An intereting interpretation.
All that is being said is that people buy BENEFITS so make sure that you understand what the benefits are from the point of view of the customer. Yes, value can be real or perceived but you need to work on presenting it properly.
No need to disagree with the man. Seems a bit strong.
About the shop...
The shops that seem to do well here are the posh ones. Newsagents etc is murder cos you can't compete with the bigger chains who always get stuff cheaper and can sell it cheaper. But the jewelry shops and fancy clothes shops and stuff charge whatever they want. They may sell less but when they make a sale they do fine. You have to sell a lot of Mars bars to make a living. Maybe I am in the wrong business.
sell what people want
sell what people want
Value is in the mind of the customer! Figure out what they want.
Tom
All is fair in love and war etc. Maybe you have the wrong shop at the wrong time in the wrong place?
Tomo
How much!! Do you have Pricing Problems? - Liz SpencerRobert CravenNRG Area Director London ...www.lizspencer.co.uk/2009/11/pricing-problems
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