Stop Discounting, Add Value and Give Away Perceived Value

By not discounting, adding value and giving away perceived value, one can increase average dollar sale.

Stop Discounting:

Simply don’t discount your prices. This will mean that your sales are returning the highest possible profit margins.  If your customers shop around a lot you may wish to offer some additional incentives such as free home delivery to assist you in closing the sale.

It’s important that you educate your customers on the value of doing business with your store.

Here are some useful hints and tips on putting an end to discounts:

• Focus on the benefits and quality of your product, not the price.
• Offer extra services like home delivery or pay by the month.
• Don’t be afraid to lose the sale … remember the ‘C’ and ‘D’ grade customer rule.

Add Value:

Offer added value services to encourage customers to buy from you. These could be something like a free first service with each used car sold, or half-price scotch guarding on lounge suits etc.

A business owner may offer these on the deluxe models only to entice his customers to spend more.

Here are some useful hints and tips on adding value:

• Look for cheap ways you can add value – it’s all about ‘perceived’ value.
• These ‘extras’ should be part of the sales script.
• The more expensive the product, the more you offer.

Give Away Perceived Value:

Give away products or services to make it look like your customers are getting excellent value for money. Whilst these things appear great to your customers, the extra you are offering should have cost you little if anything to provide.

In other words, you give away the value of an item, not it’s hard cost to you.

Here are some useful hints and tips on giving away a perceived value:

• It’s not what you give away, but how important and valuable people believe it to be.
• Something as simple as ‘your choice of color’ can do the trick.

Educate on Value, not Price:

You need to get your client focused on the benefits of the product and not the price. This is very important when dealing with bargain hunters or when selling higher priced and luxury items. To use it effectively, skip over your customers price queries by immediately coming back at them with a benefit.

Here are some useful hints and tips on educatin your cutomers on value:

• Focus on BENEFITS, not the price.
• Turn it around with lines like “Wouldn’t you pay a little extra for the added security?”

About ActionCOACH

Brad Sugars founded the brand Action International in 1993 when he realized there was a disconnect between business advice and implementation. The answer was Action! Brad Sugars created a business coaching company so that business owners throughout the world can realize their goals in business. Today the company is known as ActionCOACH. To learn more about business, visit Brad Sugars Review blog!