Price is not everything

December 15, 2011 |

Price is not everything Price is not everythingIt is important to remember that price is not everything. Value is. There are many, many consumers out there willing to pay more for an item when they see value.

Benefits such as … a clean, well maintained store that has an excellent reputation for both quality products and service excellence, professional staff that are both friendly and knowledgeable, staff that is mature and have good attitudes, staff who they have some rapport with and anything else that creates value for the customer.

Because….

There are many things that customers want and/or need, whether they articulate it or not, but they must see the value in what they buy. Let’s not forget that people buy with emotion and justify with logic.
Granted, sometimes price is the only thing they care about…but that is usually based on the type of item they are purchasing. That is why international companies like WalMart and local companies like Makro, PEP stores etc as an example similar to them, do well. They get the sales based on price.

But if a customer wants the benefits I mentioned above, then price is not necessarily the first thing they think of when they’re ready to buy.

The point is that if you own or manage a retail company, or store, that sells at higher prices…and if you are providing the value that people want…then you don’t have to worry.
If, and when, your staff tell you that the competition is selling for less and that is the reason they are not getting the results you expect – ie: to meet their targets – be sure to check it out to make sure you’re not way out of line, but don’t give in to price cutting just because! It can be a downward spiral and, if you are offering the benefits people want, and if customers see the value in your offering, you don’t have to be caught up in that downward spiral. Always refer back to your CVP (Customer Value Proposition) and if you don’t have one, consider contacting Master Retailing as this should be one of the cornerstones of your business.

One thing you must do, however, is make certain you have everything right. And, most importantly, the right staff…the ones who make customers happy to pay more!, in the end it is all about relationship building and creating a trust factor with your clients.

Category: Blog

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