Overcoming Price Barriers Orvel Ray Wilson, CSP Sr. Partner THE GUERRILLA GROUPinc Presented by: 1

Overcoming Price Barriers Economic Uncertainty

Overcoming Price Barriers Economic Uncertainty Ruthless Competition

Overcoming Price Barriers Economic Uncertainty Ruthless Competition Customer Expectations

Overcoming Price Barriers Economic Uncertainty Ruthless Competition Customer Expectations Pressure on Prices and Margins

Low Bidder “How did I go broke? I was the low bidder!”

“Sadly, we have created our own problem. “When the economy went south, so did sales people's willingness to sell on value. Instead, they panicked and went straight to dropping their pants on price. This abandonment of a solid sales strategy, and value-based selling has led us to where we are today.” Andrew Lingenfelter Director of Network Managed Services Bay Pointe Technology

“This CD player sells for less than CD players costing twice as much.”

What do we Mean by “Guerrilla”? 5

The most successful marketing series in history:

Why you don't want price shoppers as customers They gobble up your capacity If you cut your price by 10%, you have to increase your volume by 40% just to make up the difference. You establish a precedent

Why you don't want price shoppers as customers: They’re less discerning They’re more demanding They’re often disloyal Nobody ever gets fired for paying too much.

What to say when you're asked to cut your price: “Well, it’s a lot like buying oats.” “Why are you so much more expensive than (the competition)?” “I RILLY wish I could, but. . . “What do I tell my next customer?”

What to say when you're asked to cut your price: “I’d rather justify my price now, than have to apologize for poor quality later.” “What makes you think that I wouldn’t give you the best possible price right up front?”

How to Counter Dirty Tricks Split the Difference Itemizing The Crunch The Stall

How to Counter Dirty Tricks Quota Time The First-Timer False Quote The Tantrum

“Terrible Forty-twos” The Terrible Forty-Twos

What to do with Difficult, Demanding or Dishonest Customers? Refer them to the competition.

Why Customers Buy: 30

Why Customers Buy: Confidence Quality Service Selection Price 30

Why Customers Buy: Confidence Quality Service Selection Price 30

Why Customers Buy: 1. Confidence 2. Quality 3. Service 4. Selection 5. Price 30

To Sell at Higher Prices Never give your product away Know your competition Expect the Sale Collect Testimonials 31

To Sell at Higher Prices Don’t telegraph that it’s is negotiable Manage damaging information

“Discouraging data on that new antidepressant.”

To Sell at Higher Prices Give goods or services, not cash Guarantee Everything Sunshine Trash Service DOUBLE it 31

Brussels Sprouts 47

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Getting More Profit from Every Transaction Up-selling Cross-selling RE-selling

What to do when they really CAN get it cheaper Compared to what? What the customer REALLY wants is . . . YOUR product YOUR service YOUR reputation and THEIR price.

What to do when they really CAN get it cheaper Call their bluff The Spare Tire How do you Know?

The Gradient Price Overhead If money were no object . . . What we do is . . . Overhead If all you want is . . .

Tractor 123

Require Reciprocal Concessions Never concede anything without asking for something, anything, in return Reserve the right to withdraw a concession Or reserve an unspecified concession in the future.

Customers Will Pay More Quality Authenticity Stability Reliability Social or Ecological Values

Customers Will Pay More “Mr. Colton, do we stand behind our products?” Customers Will Pay More Knowledgeable salespeople

Customers Will Pay Extra Knowledgeable salespeople Reputation Partnership Consistency Customization

Customers Will Pay Extra Authority Popularity Exclusivity Scarcity Disposal

Customers Will Pay Extra Miniaturization Ruggedization Expediting

Customers Will Pay Extra Flexibility $1.39 iTunes w/o DRM Financing Short delivery times Advanced technology Arrives in perfect condition

Customers Will Pay Extra Problems fixed quickly

“You really should have called me sooner.”

Customers Will Pay Extra Problems fixed quickly Environmentally friendly 78% Said they would pay $2,000 more for a car that gets 35 mpg Benefit a third party

Customers Will Pay Extra Local Sourcing 82% have consciously supported local or neighborhood businesses Brand Names Referral

Customers Will Pay Extra To do the right thing SRI funds account for 11% of all the money in U.S. financial markets Original packing More fun.

Call for your free video 800-247-9145 Articles, Blog and more at www.GuerrillaGroup.com OrvelRay@GuerrillaGroup.com

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