Do Customers Always Buy on Price? 3 Ways to get out of the Rat Race

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Do Customers Always Buy on Price? 3 Ways to get out of the Rat Race

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priceMost everyone has heard the story about the two industrious brothers who set out to make a fortune by buying watermelons for a buck each and selling them for ten dollars a dozen. They set up their stand alongside the road and business was going gangbusters. While counting their money, they came up a little short. They finally figured it out; they needed a bigger truck.” Believe it or not, the story has been around since 1900 when Paul Nathan, wrote a book called “How to Make Money in the Printing Business.”

Research shows that price is virtually never the primary reason someone buys something. It’s also usually not the second reason—maybe the third. With the prices of smart phones these days you know. what I’m talking about. Most of us have a feeling that a higher price is equated with quality and value. Even if you shop the discounters, such as Marshalls and TJ Max, if you’re like me you wonder—are these prices really good? Often the products are last year’s merchandise and a little behind the style. Check in this time next year for today’s styles.

When times are tight, businesses have a tendency to cut their price. A business doesn’t cut wages when it lowers prices so wages as a percentage of sales goes up and sales go up because of lower prices. These two factors spell disaster long term.

Statistics tell us that price is infinitely more important to salespeople than customers. If a salesperson is concerned about price, they tell their customers, they think their prices are too high and invite the customer to beat them up on price.
Of course price matters. If you don’t talk about it to your customer, what are you communicating? It says you’re scared and don’t think your merchandise is worth what you’re selling it for. Until you can discuss price with confidence and credibility, you’re in trouble. Words like regular price, list price, best price, and lowest price, you are clearly implying that the price is negotiable. Your eye movements can also invite the customer to beat you up on price. When you say a price, you don’t believe, you almost always break off eye contact and look down.
1. All things being equal, do customers buy on price? Says who? Don’t fall into believing this trash. You can probably remember the time you paid full ticket for something and were really happy. Maybe it’s that new Apple Watch. Check out why people are buying them.
2. It’s your job to explain to the customer that not everything is equal and why the customer should pay you more. This brings us back to value, what extra things does your customer want? Can you give these things to them? Do these things make your company different? These are things you learned in your first selling class right?
3. Things are never equal, really. Coffee isn’t coffee or is it? My hunch is a lot of coffee is the same, but you would never know it. From Starbucks to Dunkin’ Donuts to your “home-town town coffee roaster,” each has you believing you should pay their price.

Maybe the glass on your front door is cleaner?

Adopted from “How to Sell at Prices Higher than your Competitor, ” Lawrence L. Steinmetz.

Lisbeth has been teaching businesses how to improve their customer service and the customer experience for over 20 years. To schedule a consultation or have her speak at your business, reach her at Lcalandrino@nycap.rr.com. If she’s not in her office, she can often be found mornings at the YMCA in East Greenbush, New York. 

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By |2017-03-03T12:06:53+00:00May 1st, 2015|Blog, Building relationships, Selling on price|0 Comments

About the Author:

Lisbeth Calandrino is an award winning trainer, entrepreneur, and blogger and has spent over twenty years developing custom tailored marketing and customer service programs for businesses. Her recently published book, Red Hot Customer Service, 35 Sizzling Ways to Heat up Your Business and Ignite Your Sales defines the steps necessary to build a competitive advantage and turn great companies into unforgettable or red hot companies. Lisbeth admits that much of her knowledge came from her Italian grandfather who despite very little formal education and a limited English vocabulary, managed to became both successful and wealthy. Lisbeth has wonderful stories about Grandpa DiBiagio’s and her time spent learning how to managing Grandpa’s fruit stand. Because of Lisbeth’s experience as a business owner, having been the managing partner and owner of 7 furniture and carpet stores for 14 years, she is able to bring her extensive business knowledge and experience to all of her clients. Lisbeth’s awards include executive of the year award from the International Executive Association, Albany chapter (a business networking group) and first place honors in an international marketing contest for alternative medicine. A two time cancer survivor, she has spoken extensively about her experiences of cancer, offering words of comfort and inspiration. As an activist, Lisbeth has initiated and contributed to many charitable causes. She has worked with at-risk youth, spoken out against injustice and advocated to and helped to build resources for women. As a presenter, Lisbeth Calandrino is highly motivational, information-rich, and very entertaining. Her acute business sense, contagious enthusiasm, positive energy and fun sense of humor make her a dynamic presenter. Lisbeth is a member of New York, Historic Albany Foundation, educational director of Business Referrals Networking Group and member of the board of directors of the Animal Protective Foundation of Scotia, New York.

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