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Are You Selling Products or Experiences?

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Recent studies have shown most sales people overwhelmingly list price as the number one reason for customers making the purchase with a company. When actually most customers list price as number eight in importance.

Last year, my wife and I went out to purchase a hot tub. We had pre-determined that we could only afford something in the price range of $3,500. Prior to visiting the hot tub store, we had called and arranged to be able to sit in several different tubs to try them out before we spent that kind of money.

The first tub that the salesman had us try was fantastic! It had a stereo system, could very easily hold eight people, it had fountains, three pumps, and unbelievable assortment of jets, bubbles and controls for everything. It even had a built in fiber optics light show.

After sitting in this tub I thought there was no way I could possibly find anything better than this. So I told the salesman that this would probably be the one. He tells me the price is $9,500. Of course I was shocked and said no way.

So we tried a few more tubs that were closer to our price. Nothing was even close to the experience I had in that first tub. So needless to say, we bought the $9,500 hot tub. $6,000 over our budget! Am I happy? Absolutely, there is no way I could have been happy with any of the others especially after experiencing the $9,500 one.

My point in this story is that your customers will value your price based on the experience you provide and offer. Demonstrating that you will offer a much better experience than anticipated will instantly increase your value to that customer. If your experience and value is much higher than everyone else, you get their work. If they trust you and believe that you will do a great job and take care of their needs, that is all that matters, price is no longer the issue.

So, the key point to remember is: the experience you offer your customer does determine the value. You can charge higher fees if you create greater experiences.

This is not rocket science or brain surgery. Just a few simple processes and routines to implement and you will be on your way to increased customer loyalty and referrals.

Frank Besednjak

Posted In: ACCA Now, Management, Sales & Marketing

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