Carmelina and Mick Stillone own a high end “Audio Boutique” on the Northern Beaches of Sydney. They’ve been in the hi-fi and home theatre business for over 30 years and provide excellent service.
A couple of weeks ago, I got this email from Carmelina…
“Hi Rashid,
I wanted to share something with you that we witnessed last week when we noticed a group of kids aged around 7-8 going around into stores in Mona Vale. Mick happened to notice and listened in and the point of the excursion was to teach kids how to ask for discounts and barter with small retailers. The teacher told the kids that you can’t do this in Coles and Woolies but certain stores you can, especially small speciality stores.
Mick was a little shocked and had to contain himself from spoiling the excursion for the teacher and kids. I would like to write to the education department and explain that we run a professional serviced based business and what right does the education system have to educate our kids about asking for a discount. All we hear about on the news is where to buy the cheapest items and how to save money.
I wanted to share this with you so you know what retailers have to deal with on a daily basis.”
It’s the age of the discount. Just about everywhere you look shops are discounting their wares by 50% - 70%, offering 2 for 1 specials… anything to get people into the store where they’ll hopefully buy something.
And as consumers, we’ve got really used to it. Why on earth would we want to pay full price? Why wouldn’t we continually look for a bargain?
But this is not a recent phenomenon. For years we’ve had Bing Lee (a very successful local White Goods, Computer and Electronics store) build their brand around the slogan, “Everything’s Negotiable”.
Then there are the “Good Guys” – another similar chain which offers “Less for Cash”.
So in a way it’s hardly surprising that teaching kids how to bargain is becoming part of the curriculum.
But if you’re a high end specialist – be it retailer or consultant, how do you combat this ever present request for cheaper prices?
The short answer is you need to “explain” your value.
Huh? I hear you asking…
When someone walks into Mick & Carmelina’s shop looking for hi-fi or home theatre equipment at the cheapest possible price, they probably have no idea what they’re really looking for.
Sure they could buy something cheap. But once they take it home, will it look and sound the way they envisaged or will they be disappointed and feel cheated? Will they proudly show off the equipment to their family and friends, or curse your existence?
The answer is entirely in your hands. It all comes down to how you explain and demonstrate your skill and value.
Here’s how Mick (with his 30 years’ experience) would go about it, compared to your local big chain retailer.
He’ll ask you a series of questions. What sort of music do you listen to? Acoustics are important. So where would the equipment go in your home? What are the hard and soft surfaces that will affect the sound? The list goes on.
You’d then sit in a special listening room, away from outside noise, so you could listen to various combinations of amplifiers and speakers to hear which ones you vibe with.
Throughout the process Mick would be giving you recommendations. He’ll even come out to your home to see how the equipment should be placed and balance the acoustics.
And once you’ve been the beneficiary of all this care and attention, (something you’d never get from a large chain retailer) price often becomes secondary. You’ve experienced the supplier’s knowledge and value and happily part with your money safe in the knowledge you’ll be happy with your purchase for years to come.
There’s just one problem…
The prospect coming across you for the first time has absolutely no idea about your experience, how much trouble you go to with ensuring they get the right advice and products so they can buy with confidence knowing they’ll be happy with the result. Unless you tell them!!!
Which is exactly what the vast majority of businesses fail to do.
You know the myriad details involved in providing your product or service and because you do it day in and day out, take it for granted. “This is just what we do”. But your customer doesn’t know this. And if they don’t know it, how can you expect them to appreciate it? See your value? Compare you favourably to your competition?
Frankly, they can’t. And so lump you in with everyone else and make buying decisions based on price.
“So your mission, ‘Jim’, should you choose to accept it…” is to create marketing and sales material which explains in great detail what it is you do for your clients, how they benefit – i.e. what your solution gives them and tie it all back to your expertise.
And the best way to do it? Create White Papers and Free Reports which state the problem, outline a solution while using lots of case studies and testimonials as social proof.
Then use this material to educate your market so they understand the true value of dealing with you over the competition who I guarantee won’t be doing anything like it. You’ll stand out from a crowded pack and become a class of your own, attracting great quality clients who understand the value you provide and are willing to pay for it.
One last thing.
One of the most difficult exercises is to figure out our own value. We all take what we do for granted. So if you’d like help with explaining what you do in terms your prospects will relate to, creating material like White Papers, Case Studies and Testimonials, call me on (02) 9499-7958. Christmas is a great time to be doing this. Things are often quieter and you can plan for the new year.
Rashid.
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