“We fix $6.00 Haircuts”
I love the commercial about the barber shop man. He is losing customers to his competitor across the street that has a big banner on the storefront announcing “$6.00 Haircuts”. The barber goes to the office supply store and buys a banner that says, “We Fix $6.00 haircuts”. Brilliant!!
There’s ALWAYS someone who is going to charge a lower price but as my good friend John Palumbo says, “Price, Quality and Speed-pick 2 out of 3, you can’t get all 3”. If price was an issue, we would all drive used Pintos. WE have the money for what we value.
When you are in front of a customer who wants to negotiate, ask them what they want to eliminate. Can they make a quick buying decision and commit today? Are they willing to wait on delivery? Are they willing to deduct some of the “extras” that you were initially offering?
Everyone is shopping around and every price is being challenged. Instead of holding firm to your price, look at your costs and see what can be eliminated so your price can be lowered without losing the value of your offer.
Instead of being so backed in the corner with price, first decide your place in the marketplace. Are you cheap, fast and easy? ( I wouldn’t advertise that!) Are you top of the line, 1st class and not for everyone? Are you somewhere in between? You need to clearly define what market you appeal to.
To avoid being a commodity, you must clearly define your USP (Unique Selling Proposition). What do you offer that no one else does? Make that your tag line. Be sure it’s on your website where prospects can find it and add to your signature file.
Oh, don’t fall for the $6.00 haircut because you will pay EXTRA for shampoo and blow-dry.