You get what you pay for : A value proposition lesson
Posted by Mark Campanale on Wed, Jan 27, 2010 @ 02:59 PM
By Mark Campanale
Marketing & Social Media Manager
I needed gum.
On this particular day I was reaching for my usual pack of branded gum that held the promise of pure chewing satisfaction, when a flashy discount sign popped into my peripheral. The gum was an entire 2 dollars cheaper! I decided to trust the discount and try the gum. Long-story-short, it wasn't that good. It was pedestrian at best and how it got in the same category as the gum I wanted, I'll never know. But I do know this -
I GOT WHAT I PAID FOR.
By basing my purchase solely on price, I learned a quick lesson. The same can be said about how your customers choose to buy your product/service or that of your competitor's.
As a seller, if the price of your product reflects the quality then there is no reason to budge on price. It is the job of the seller to show the consumer that they are getting what they pay for. If someone chooses and inferior product to yours to save a buck, they either:
a) learn a valuable lesson in what-not-to-buy, or
b) they weren't the customer you wanted to begin with.
If customers or prospects call to haggle on the price of your product/service, it is because you've trained them to do so. You've shown them that the 'price isn't the price', and what you have is of a lesser value.
Think about this: nobody has ever called Apple and said, "I'll buy 3 ipods if you give me a $100 discount." Why not? Because Apple has earned the right to sell ipods at their given price point because they've created a superior product that everybody wants.
It's not easy standing firm, especially in this economy when everyone is scrambling to make money. But when you do, you earn the respect of the buyer and you increase the value of your product. People who get upset that you won't discount your price do so because THEY WANT YOUR PRODUCT!
If you believe in what you have, stand by it; don't wimp out; be proud of the cost because in the end, your product/service will have more raving fans.
Special thanks to President & CEO John McQuillan and Executive Vice President Tom Aicardi for the inspiration and support that drove me to write this blog.