CombinedNSP Site Admin
Joined: 13 Dec 2006 Posts: 1406 Location: Cleveland, OH
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Posted: Dec Sun 17, 2006 1:05 pm Post subject: Sell Results, Not Price |
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Sell Results, Not Price
About a month ago, Paul and I engaged in an e-mail discussion about pricing. Paul is one of the largest franchisees in the United States and enjoys phenomenal growth each year. In case you're not familiar with (product), it's a cooperative advertising program. They custom-design a flyer for you, print it, and mail it to about 10,000 homes in a particular area (usually a few ZIP Codes). Paul's aggressive low-price strategy attracts advertising customers. But I think he could attract more ... a lot more.
How? By selling results, not price. Since Paul offers low prices to attract customers, what do you think happens when the Money Mailer® salesperson (Paul's competition) visits the same afternoon? It's a price war. But what if Paul was different and sold results, not low prices? For example, here's what a typical Val-Pak salesperson might say to a prospective advertiser: "We can design, print, and mail 10,000 flyers for you -- for just $400." Here's what I'd say instead: "How'd you like to attract new customers for just $50 per customer?" Most marketers would jump at that opportunity. Once they say, "Yes, of course!" then I'd ask how many new customers they want this week or this month: 1 new customer = $50, 2 new customers = $100, 10 new customers = $500. Advertisers want to buy new customers – not stuffed envelopes.
By Markus Allen [http://www.markusallen.com] |
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