One of my coaching clients was recently reviewing his sales numbers with me. He began to implement my sales system about six months ago, and his closing rate has not changed. However, he has increased his selling price by more than 30 percent. In other words, he is getting a lot more money for the same effort.
As we were talking, he said rather forcefully, “Price doesn’t matter.”
Of course, in one sense price does matter. We can’t charge arbitrarily high prices just because we want to be wealthy. But in another sense, he was absolutely right. If we offer a superior value, then we should charge a superior price. And customers will pay that price, if they want superior value.
As evidence, look in any parking lot. You won’t see it filled with beaters and Yugos. You will see a mixture of vehicles. Some will be expensive and some will be cheap. People have different values. Some are content to drive a Yugo so long as it gets them where they want to go. Others want to travel in a more comfortable and luxurious setting. Both are doing what is right for them.
The same applies to paint jobs. Some people want a BMW paint job and some are content with a Yugo paint job.
If someone is in the market for a new car, they have an idea of what models will fit their budget, needs, and desires. If they have a Yugo budget, they aren’t going to go to the BMW dealership. But if they are in the market for a paint job, it isn’t so easy to distinguish the BMW contractor from the Yugo contractor.
So, the person with the Yugo budget will often call the BMW contractor. And then the contractor will be told that his price is too high. Duh! If we are offering the BMW of paint jobs, the trick is to attract those customers who want a BMW paint job rather than the Yugo buyers.
High-end brands like BMW, Lexus, and Mercedes focus on value in their advertising. They taut their luxury, dependability, comfort, and the other values that will appeal to their target customer. We should do the same in our marketing.
>Not everyone wants a BMW paint job. That’s fine. But we could save ourselves a lot of time and frustration if our marketing attracted those who do, rather than those who want a Yugo paint job.