Value Versus Price - Good story next time you get hammered on price

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Do you sell your media like a commodity or do you sell the value and results your customer will get from using your product? The next time you get whacked over the head by a media buyer/prospect hammering you on price-cost per point-cost per thousand, or just wanting you to discount your product, think about this story.

One day a customer walked into the showroom of a Mercedes-Benz dealership. “Hi, I’m interested in purchasing a Mercedes-Benz.” “Well, you’re making an excellent choice,” the salesperson replied enthusiastically. "Is there a particular model you have in mind?”

“Yes,” said the customer-reading a printout from the online Mercedes-Benz homepage. “I would like an SLS-AMG GT Final Edition Coupe at $17.00 CPP.”  “I’m sorry,” said the salesperson. “Did you say CPP?”
“Yes,” said the customer. “You see, it’s a very simple formula. I took the cost of a four-door Lexus and divided it by its weight. Based on 4,500 pounds, I came up with $17.00 cost per pound.”

“That’s a novel way of pricing a car,” the salesperson said, “but don’t you think that style, performance, and quality need to be factored into your decision? Not to mention how it’s going to be used and who will be driving it?”
“But those things don’t matter to me,” said the customer. “You see, I’m a professional buyer (advertising agency), and I won’t be actually driving the car. I’m here on behalf of your potential customer, whom I told I could buy that car at a $17.00 cost per pound. I really don’t care about the quality or features, I’m just here to negotiate price since you have it in your showroom.”

“Perhaps you might want to consider a Geely MR. It is a sub-compact car produced by the Chinese automaker Geely Automobiles since 2000,” said the salesperson. “Your customer won’t be getting the Mercedes-Benz AMG SLS they actually wanted, but I’m sure you can find something online that might fit your pricing formula.”
“That sounds fine,” said the buyer. “After all, a car is a car, as far as I’m concerned. The cheaper the better. Oh, by the way, whomever I buy the car from needs to give me free tinting, fabric protection, and clear film on the front bumper -- for added value, if you know what I mean.”

“On second thought, may I suggest that you have your customer come in to experience the SLS AMG GT Special Edition Coupe for himself, and in the meantime, you may want to see one of our used salespeople. They have an automobile that would meet your need to find the lowest possible price. It’s a used Tata Nano.”

The next time you think about caving in and not selling your value, think about the quality of your product. Story courtesy of Ron Hill.

Sean Luce is the Head National Instructor for the Luce Performance Group International and can be reached at sean@luceperformancegroup.com or www.luceperformancegroup.com. Sean’s new book The Liquid Fire can be found on Amazon.com. 

As seen in Radio Ink Headlines November 12, 2015

http://radioink.com/Article.asp?id=2861212&spid=24698