Selling on value

We talked about selling on price, so now let’s talk about going the “value” route. Like I have said in the past about my wife’s beauty and tanning salon, she sells at a higher than normal price. She does this because of the value she brings to the customers. She markets to the women that see the value of being pampered and the experience, not just the end result. She starts with the décor and the mood of her salon. It is vintage 1940’s French style. The whole place is. And not like a grandma’s house. This is done in the way a real vintage boutique would have been done. The music is even period specific to set the mood. The girls make a fuss over each and every client with drinks, treats, and every client is introduced to the other clients.

The customers get a genuine unique experience. This is the value. For this she gets top dollar. Her overhead might be 15% higher than anyone else in town, but she can charge 50% more than anyone else.

The Master has spoken!

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Selling on price

Selling on price is the nation’s oldest way to get the sale. Undercut the other guy. This can be one of the worst things you can do for your business. This could also be the best thing for your business. I’ll just state the obvious. If you can’t afford to give Wal-Mart prices, then don’t advertise that you can. But if you can get in the position to be the “Low Price Leader”, then you might be wise to do it. You can do this a couple of different ways. First is to sell a cheaper product or find a better source of your product than your competition. (or cheaper labor). The second way is to have very, very low overhead to be able to afford to make a smaller margin on your product or service. But don’t kid yourself thinking you can just “make less” than you competitor just to make the sale. You will fail and inevitably have to close your business. It has been tried and tested this way. If you aren’t in the position to sell cheap, DON’T DO IT!

The Master has spoken!

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