“Why are your balloons so expensive?”
Businesses get the same call day after day:
“How much is it? Do you have any coupons? Do you price match? But I can find it cheaper somewhere else!”
Most of the time the argument is not about price but about value. If you offer something that is worth more, you should charge more. Not for the sake of being more expensive. But because you provide a greater value than your competition.
Would you by a $1.00 apple in a store that has a dirty floor, no customer service and makes you bag your own groceries? Or would you pay $2.00 for an apple in a well-lit, clean store with pleasant employees and someone who correctly places your items in grocery bags?
Value expression leads to a better customer experience
Value can be expressed in many ways. Customer service, quality or customization. It is up to the business to start the discussion about their value. If a customer is purely price-shopping, no amount of value points will close that sale. There is nothing wrong with letting that customer go. If you discount your price to get that customer for this sale, you have set the expectation that your value is not what you priced it originally. And you’ll have to continually discount to keep that customer.
The response for a “price” question should be a discussion of the customer’s expectations, reason for buying and needs. Not only will you learn about the customer’s intentions, they will appreciate your interest in them. By asking about the customer you show appreciation for their opinions and you have the opportunity to explain your process. That instills your value in their mind.
Listen to the expert
To truly understand the value mindset, check out Dale Furtwengler, (http://pricingforprofitbook.com). Dale is an expert in pricing, value and customer profiling. His book, “Pricing For Profit”, takes business owners and sales forces through the complete process of understanding value and conveying that value to customers. And charging higher prices because of it!
Understanding your value is key to understanding your pricing. If your only sales point is price, then you don’t have any other message to give. By promoting the value of your product/service, you can educate your customers on the full range of your benefits.
And your sales will definitely increase!
Thad James
SAMMY J Balloon Creations
www.sammyjballoons.com
“Turning fun and creativity into unique customer experiences”
Individuals, businesses and associations hire SAMMY J Balloon Creations because they want a unique, fun and creative experience for their celebrations. They do this to produce a memorable atmosphere for their guests and to enhance their occasions. Whether entertaining an audience with a show or filling a function hall with decorations, we work with event planners to customize packages to fit any occasion.