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Overcoming Price Barriers

Overcoming Price Barriers. Orvel Ray Wilson, CSP Sr. Partner THE GUERRILLA GROUP inc. Presented by:. Overcoming Price Barriers. Economic Uncertainty. Overcoming Price Barriers. Economic Uncertainty Ruthless Competition. Overcoming Price Barriers. Economic Uncertainty

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Overcoming Price Barriers

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  1. Overcoming Price Barriers Orvel Ray Wilson, CSP Sr. Partner THE GUERRILLA GROUPinc Presented by:

  2. Overcoming Price Barriers • Economic Uncertainty

  3. Overcoming Price Barriers • Economic Uncertainty • Ruthless Competition

  4. Overcoming Price Barriers • Economic Uncertainty • Ruthless Competition • Customer Expectations

  5. Overcoming Price Barriers • Economic Uncertainty • Ruthless Competition • Customer Expectations • Pressure on Prices and Margins

  6. Low Bidder “How did I go broke? I was the low bidder!”

  7. “Sadly, we have created our own problem. “When the economy went south, so did sales people's willingness to sell on value. Instead, they panicked and went straight to dropping their pants on price. This abandonment of a solid sales strategy, and value-based selling has led us to where we are today.” Andrew Lingenfelter Director of Network Managed Services Bay Pointe Technology

  8. “This CD player sells for less than CD players costing twice as much.”

  9. What do we Mean by “Guerrilla”?

  10. The most successful marketing series in history:

  11. Why you don't want price shoppers as customers • They gobble up your capacity • If you cut your price by 10%,you have to increase your volume by40% just to make up the difference. • You establish a precedent

  12. Why you don't want price shoppers as customers: • They’re less discerning • They’re more demanding • They’re often disloyal • Nobody ever gets fired for paying too much.

  13. What to say when you're asked to cut your price: • “Well, it’s a lot like buying oats.” • “Why are you so much more expensive than (the competition)?” • “I RILLY wish I could, but. . . • “What do I tell my next customer?”

  14. What to say when you're asked to cut your price: • “I’d rather justify my price now, than have to apologize for poor quality later.” • “What makes you think that I wouldn’t give you the best possible price right up front?”

  15. How to Counter Dirty Tricks • Split the Difference • Itemizing • The Crunch • The Stall

  16. How to Counter Dirty Tricks • Quota Time • The First-Timer • False Quote • The Tantrum

  17. “Terrible Forty-twos” The Terrible Forty-Twos

  18. What to do with Difficult, Demanding or Dishonest Customers? • Refer them to the competition.

  19. Why Customers Buy:

  20. Why Customers Buy: Confidence Quality Service Selection Price

  21. Why Customers Buy: Confidence Quality Service Selection Price

  22. Why Customers Buy: 1. Confidence 2. Quality 3. Service 4. Selection 5. Price

  23. To Sell at Higher Prices • Never give your product away • Know your competition • Expect the Sale • Collect Testimonials

  24. To Sell at Higher Prices • Don’t telegraph that it’s is negotiable • Manage damaging information

  25. “Discouraging data on that new antidepressant.”

  26. To Sell at Higher Prices • Give goods or services, not cash • Guarantee Everything • Sunshine Trash Service • DOUBLE it

  27. Brussels Sprouts

  28. Blank Slide

  29. Getting More Profit from Every Transaction • Up-selling • Cross-selling • RE-selling

  30. What to do when they really CAN get it cheaper • Compared to what? • What the customer REALLY wants is . . . • YOUR product • YOUR service • YOUR reputation • and THEIR price.

  31. What to do when they really CAN get it cheaper • Call their bluff • The Spare Tire • How do you Know?

  32. The Gradient If money were no object . . . Price What we do is . . . Overhead If all you want is . . .

  33. Tractor

  34. Require Reciprocal Concessions • Never concede anything without asking for something, anything, in return • Reserve the right to withdraw a concession • Or reserve an unspecified concession in the future.

  35. Customers Will Pay More • Quality • Authenticity • Stability • Reliability • Social or Ecological Values

  36. “Mr. Colton, do we stand behind our products?” Customers Will Pay More • Knowledgeable salespeople

  37. Customers Will Pay Extra • Knowledgeable salespeople • Reputation • Partnership • Consistency • Customization

  38. Customers Will Pay Extra • Authority • Popularity • Exclusivity • Scarcity • Disposal

  39. Customers Will Pay Extra • Miniaturization • Ruggedization • Expediting

  40. Customers Will Pay Extra • Flexibility • $1.39 iTunes w/o DRM • Financing • Short delivery times • Advanced technology • Arrives in perfect condition

  41. Customers Will Pay Extra • Problems fixed quickly

  42. “You really should have called me sooner.”

  43. Customers Will Pay Extra • Problems fixed quickly • Environmentally friendly • 78% Said they would pay $2,000 more for a car that gets 35 mpg • Benefit a third party

  44. Customers Will Pay Extra • Local Sourcing • 82% have consciously supported local or neighborhood businesses • Brand Names • Referral

  45. Customers Will Pay Extra • To do the right thing • SRI funds account for 11% of all the money in U.S. financial markets • Original packing • More fun.

  46. Call for your free video • 800-247-9145 • Articles, Blog and more at www.GuerrillaGroup.com • OrvelRay@GuerrillaGroup.com

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