Get Top Dollar
Establish value to get what you are worth
By Paul Montelongo
Do you get Top Dollar for every project you perform? Or, like many contractors, do you give a little here and there to make the price work for your client in hopes that you will turn enough profit to make the project worth your while? In a fiercely competitive market place, there is little room for “padding” your bids. So when you know you are worth every cent of your contract price, how do you get top dollar for your product or service?
The answer is to “repackage for value”. Adding greater value to your service and letting your clients know about this value is the key to getting Top Dollar. By “repackaging for value”, you set your company apart from the crowd to get what you really want. Offering real value for your product or service will allow you to justify your price in the minds of your customers.
Where do you start? First, understand that most of the time, value is only a perception. The individual client determines value. What is of value to one client may be of little value to another. For example, an extended warranty offer may mean little to a person who is only interested in a convenient and temporary solution. What compels one customer to buy means little or nothing to another customer.
How do you know what to offer? Just ask. That’s right, ask your premier customer what they consider to be the real value in what you do. Your premier customer is that customer who has a high level need for your product. They also have a frequent need for your product and they are in a position to influence others to buy your product. Your premier customer understands the value of what you do, so just ask them. You may obtain this info rmation in a personal interview, by way of questionnaire, and certainly by observing the buying patterns of your customer.
From these interviews, discern what it is that you do that sets you apart from the competition. This is your customer’s perception of the value of your product or service. When you interview enough of your customers, you will begin to hear a repeating theme. It is this theme that you want to accentuate in all of your marketing, sales and promotion efforts.
Some areas to consider that will set your product apart from the competition are as follows:
Responsiveness
In a fast paced society where people expect things to be “done yesterday”, response time is crucial. Response time relates to returning phone calls, on-time or before-time delivery, warranty response, real-time quotations, etc. Response time correlates to customer service. The promptness and quality of the response time often is a measure of exquisite customer service. Responsiveness requires listening to your customer and delivering according to their expectations. Again, your premier customer will tell you how responsive you are and what you can do to improve.
Knowledge
What info rmation do you possess that is important to your customer? Even better, what info rmation do you possess that your competition has yet to discover? There is great value in knowing info rmation that will enhance the purchase your customer is about to make. The knowledge that you have obtained through education or experience is of great value to your customer. When your knowledge improves your customer’s personal or professional well being, your product or service has tremendous value. You may have vital info rmation about safety, design, practicality, or time and money savings. Anytime you can create an additional convenience for your customer you have added value.
Quality of Product or Service
In order to get Top Dollar, there must be a distinguishable difference between you and your competition. You must be able to demonstrate a higher level of quality with your product or service. When you are able to prove the higher level of quality, the marginal difference in cost is justifiable. You can then amortize the cost difference over the life of the product and the real value will shine through. Among many things, the quality of your product can be measured by durability, life expectancy, ease of use or maintenance standards. The point is that there are many ways to improve the quality of your product or service to add real value for your customer.
Variables
You would probably be surprised at the many responses customers give when asked why they buy a specific product from a company. In addition to the aforementioned reasons, there are many intangible reasons that your customer will consider as value. Your premier customer may say that you and your company staff are easy to work with. Perhaps you have made the purchasing process easy for them. They may buy from you based solely on your reputation. They may just like the color and design of your brochure. There can be any number of reasons why a customer will buy a product. Continue to ask your best customers why they buy. What forms the basis of their buying decisions? Keep track of these reasons and emphasize them to prospective clients. Odds are that they too have some of the same needs as your existing customers.
It is not easy to command Top Dollar in an intensely competitive marketplace unless you understand how to repackage for value. Take great care in asking your premier customers what makes your company stand apart from the others. Do not take anything for granted. Your customers will tell you what it is they want, if you will just ask. They will also tell you what else you can offer to fill their buying needs. This info rmation often leads to new products, services and technologies. A commitment to continued improvement by asking your premier customer what they want will help you get Top Dollar for your product or service.
Until we have the honor to meet in person, remember, “Success is YOUR choice, choose well.”
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