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

3. Overcoming Price Barriers
Economic Uncertainty

5. Overcoming Price Barriers
Economic Uncertainty
Ruthless Competition

7. Overcoming Price Barriers
Economic Uncertainty
Ruthless Competition
Customer Expectations

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

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

11. “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

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

13. What do we Mean by “Guerrilla”?5

14. The most successful marketing series in history:

15. 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

16. 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.

17. 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?”

18. 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?”

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

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

21. “Terrible Forty-twos”
The Terrible Forty-Twos

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

23. Why Customers Buy: 30

24. Why Customers Buy:
Confidence
Quality
Service
Selection
Price 30

25. Why Customers Buy:
Confidence
Quality
Service
Selection
Price 30

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

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

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

29. “Discouraging data on that new antidepressant.”

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

31. Brussels Sprouts 47

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

34. 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.

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

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

37. Tractor
123

38. 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.

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

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

41. Customers Will Pay Extra
Knowledgeable salespeople
Reputation
Partnership
Consistency
Customization

42. Customers Will Pay Extra
Authority
Popularity
Exclusivity
Scarcity
Disposal

43. Customers Will Pay Extra
Miniaturization
Ruggedization
Expediting

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

45. Customers Will Pay Extra
Problems fixed quickly

46. “You really should have called me sooner.”

47. 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

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

49. 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.

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