| I hate being ripped off, worst of all I hate ripping | | | | The customer had clearly come equipped to buy the |
| myself off! | | | | aquarium; he had called to check the price, travelled |
| When I was about eight years old there was a sign | | | | to pick it up himself and brought the full amount in |
| in the corner shop window for tennis balls. Suddenly | | | | cash. |
| overwhelmed with an urge to buy one, I rushed | | | | So why did the salesman feel the need to give him a |
| home and asked my mother if I could have the | | | | discount? |
| money. To my surprise she said, "Yes, OK, how | | | | Maybe he only liked to deliver 'good' news, maybe he |
| much do you need?" | | | | didn't think the customer would give him the full |
| Flushed with a sense of embarrassment which I still | | | | amount - either way he got less than he actually |
| can't explain, I knocked the price down by about | | | | could have got, 10% less - could you imagine |
| 30%. I don't know why, maybe I only like delivering | | | | increasing your turnover by 10%? |
| good news, maybe I didn't think she'd give me the | | | | I'll tell you something, it's a lot harder than decreasing |
| full amount - either way I got less than I actually | | | | your turnover by 10%! |
| needed, making the whole process a little pointless. | | | | Since then, I have come to learn that the price of a |
| When, I got back to the store, the only thing I could | | | | product should always be the amount that it is worth |
| afford was a ping pong ball, which I bought (so that | | | | to the customer, so ask yourself this; |
| the trip hadn't been a complete waste of time!?!) and | | | | Are you ever embarrassed when you tell people how |
| then hid it from my mother because I felt stupid. | | | | much they will have to pay for your product or |
| I'm telling you this because it came rushing | | | | service? |
| (embarrassingly) back to me last week when I | | | | Why? |
| overheard a negotiation, and the salesman got me | | | | If you are ripping people off, then quite right, feel |
| thinking - "how many grown-ups are doing something | | | | embarrassed, get out while you can and find a |
| similar with their company's money?" | | | | product which you feel proud of. |
| Price really embarrasses some people. When a sales | | | | But if it's worth it, if the price is fair, what's your |
| person has some flexibility with margin to "get the | | | | problem? |
| business" sometimes their inner voice just wants to | | | | Here's another question; |
| knock a little off, that the amount could possibly be a | | | | Those shoes you wear to work, were they the |
| little on the high side and anyway, the margin | | | | cheapest on the high street? |
| flexibility was probably built in for a moment just like | | | | I bet they weren't. Someone out there was selling |
| this. | | | | cheaper shoes than you bought; so why did you buy |
| Let me tell you another story; | | | | them? |
| Skip ahead about ten years from the tennis ball | | | | Was it because you wanted them, liked the colour, |
| debacle and I'm working for a business that imports | | | | liked the style, made you feel good about yourself, |
| the most expensive, stylish and technologically cutting | | | | because they were a really nice fit, was the sales |
| edge aquariums around at that time. | | | | person pleasant? |
| If you wanted one of these, you took your home | | | | Do this now |
| aquarium hobby really seriously - or could afford | | | | Write down the price of your service or product |
| someone else to look after it for you. | | | | next to the price of three competitor prices. |
| So, one day this guy calls and asks if we have a | | | | Then, underneath the prices that are less expensive |
| certain model in stock, I take the call, check the | | | | than yours, write three good reasons why your |
| storeroom and call him back. | | | | product or service is a better buy. |
| "Yes we do! It costs £1,000. You want to pick | | | | Similarly, for all those that are more expensive, find |
| it up this afternoon? OK, see you then." | | | | three things that both your product and theirs have |
| So the guy turned up, introduced himself and he | | | | in common. |
| inspected the aquarium. | | | | Those are the reasons that make what you have to |
| He turned to the most senior salesman in the room | | | | offer special and value for money, they should form |
| and asked "How much for cash?" | | | | a major part of your defence during objections |
| To which Mr. Senior Salesman replies "10%" | | | | regarding price. |
| So the customer pulled £1,000 in cash out of | | | | Simply put, these few sentences should enable you |
| his wallet, counted £100 from the top and | | | | to prove why your product or service costs as much |
| gave us the £900. | | | | as it does. |
| Now as a business there was no 10% discount rule, | | | | Do this from now on |
| there was flexibility sure, but there was nothing in | | | | If someone is ready to offer you the right amount |
| the induction about cash discounts. | | | | of money, don't let your own insecurity force you to |
| Let's have a look at that again; | | | | make do with a ping pong alternative. |