“Brains Over Bucks.”

By Jeff Slutsky and Marc Slutsky

Price is an important issue in the buying decision, but it's not the only issue.  There are several other key elements that the majority of customers and clients consider before they make a commitment to buy, including providing a higher level of personalized service, more convenience, better quality and greater selection, just to name a few.  The only time price becomes the key concern to the consumer is when that customer does not perceive any difference between what you have to offer relative to your competition. 

Ask yourself the question, "Why should someone pay, say, 10% more to you for providing the same product as another business down the street?"  Keep in mind that you can be competitively priced without being the lowest price, and that little extra margin you can get makes a big difference on your bottom line.

 Take for example the hair salon on the West Coast.  This guy built up a nice business.  He learned all the newest styles, provided great customers service.  He would charge about $15 for a haircut, which put him in the mid range for this marketplace.  Then a new shopping center opened up directly across the street.  In that new shopping center was one of those discount haircut franchises.  To advertise this new location, the franchisee uses a billboard right in front of that new shopping center.  With nothing but a plain blue background and plain white letters, he simply said, "We Give $6 Haircuts," with a big arrow point into that shopping center.

Now think about it.  Here are all of these people going to their $15 haircut appointments, over the course of a month, and they see this big billboard on the other side of the street, "We Give $6 Haircuts."  That's obviously a lot cheaper and, a bunch of them go across the street to try it out.

So there's this guy losing business across the street because of price.  What's he going to do?  I mean, he could cut his price in half and still not be competitive based on price.  We'll, this guy thinks like a Street Fighter.  He rents his own billboard in front of his own salon.  He uses the same blue background and the same plain white letters and he puts, "We FIX $6 Haircuts."  That turned him around instantly.

Price is an issue but it's not the only issue. And, if your customers forget that you have something special to offer, you might just have to remind them.

Street Fighter Action Plan

1. Do some comparison shopping to learn your competitions prices.
2. Identify those items or services that are of lesser quality than your competitions'.
3. List those areas of your products or services where you provide better quality.
4. Write out several buyer benefits for those higher qualities.
5. Incorporate that information into your sales and advertising.

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