Discounting? Forget about it.
  iscounting?
Forget about it, expert advisies. It's, killing industries, he claims, and
besides, 'Price is not the main issue ever, for anybody’
There are many in the business world who think discounting and zero?percent
financing are good ways to boost sales. Not so, says lan Brooks, who gave the
presentation, “Value Selling," at the United Marine Manufacturers Association
Conference in October.
"Do not discount," said the author and professional speaker on business marketing
and customer service. "Industry after industry after industry today is on the
ropes because individuals have discounted on top, of each other."
As examples he cited the airline industry with its infamous price wars, and
the automobile industry with its zero?percent financing. Both are struggling
with diminishing profits.
"Discounting can destroy your profit, your industry and your brand," said
Brooks.
"I'm not saying you shouldn't have promotional offers to break into new markets
or to clear inventory," he said. But, "You don't have to discount, because
price is not the main issue ever, for anybody. There is always something we
will pay more for and your job is to find out what that thing is for your customer."
Brooks says people generally are willing to pay more for value.
There are two rules of value selling, he explained. First, you have to sell
what your customers are buying. And second, you need to put your customers
in the centre of your world and learn as much as you can about them. Understand
their problems and concerns, and let that drive your business, said Brooks.
"Understand that your customers do not want a relationship with you ... unless
it will help them get their needs met," he said.
"Focus on making your customer ? your dealers ? successful," Brooks continued. “They
will think of you as partners if they believe you are an instrumental part
of their success.”
He said all businesses, whether retailer or manufacturer, should present
their price and then let the customer compare it with the costs they would
incur if they don't buy into your solution. For example, he advised UMMA boat
builders to teach their dealers to sell a boat by comparing the initial cost
to the priceless value of spending time together as a family. And, sell bigger,
more expensive boats by selling the value of added safety and stability.
Melanie Winters
TradeOnly
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