One key issue when making a purchase is the price. Being a smaller business means you can’t get the same deal that giant superstores get, because they purchase large volumes. You can control the retail price on your end. Here’s one example of how to do that.
You, as a small business owner, can make exceptions, while the large businesses can’t. You can cut your price on one item while making your profit on some other item.
Although large businesses do this on some scale, they can’t do it as quickly as you, and they can’t do it for one customer and not for another. They have layers of approvals to go through you can do it on the fly!
For example, you could go under the wholesale cost of a new computer by $100, and you could make your profit on a service plan that will cover the loss on the computer.
Another approach is to get creative with packaging items together package deals! For example, offer a computer, a scanner, and a free printer with free installation when you sell an extended service plan.
Here’s an example of what Jack did:
He owns a small computer store in the city. He took out an ad in the paper and offered a brand-name computer that was $100 below any other advertised price.
One woman came into the store to check out his offer. She said the large company would match any advertised price. He said, Yes, you’re right, and if you’re comfortable with that, then your satisfaction is what matters most. But let me ask you this.
Will they install the computer and give you a one-hour tour of how the system works? Will they offer you free phone support for 30 days? We can offer you this at no extra charge. She said, No, they don’t. I have to install it. You know, your offer sounds great. Can you have it installed this afternoon?
Sure thing, Jack said, and I’ll take along some accessories in case we may need them. If you do need them, I’ll put them on your account. Great, here’s my credit card and address.
Jack installed the computer and made an extra $150 in profit from the accessories and he has a happy new customer!
The big companies have sales reps who can’t cut deals and can’t create packages for each customer and their price is usually fixed and non-negotiable. Because you are a small operation, you’ll be able to make deals and create packages on the fly.
You must become a deal maker. Practice your skills, and soon you’ll be making more sales and you’ll easily put together deals.
That’s the way I see it.
A Touch of Business.com
Action Steps To Help You Compete In Price
1. Think about products you can package together to make an irresistible offer.
2. Practice creating sales and developing packages. Start by making lists, and keep refining your lists till you feel you have an excellent package or strategy for a sale.
Important Points to Keep In Mind When Competing on Price
- You can cut your price on one item while making your profit on some other item.
Because you are a small operation, you’ll be able to make deals and create packages on the fly.
- Practice your skills, and soon you’ll be making more sales and you’ll easily put together deals.
- Start by making lists, and keep refining your lists till you feel you have an excellent package or strategy for a sale.