Wednesday, October 16, 2013

Does the cheapest always win?

Some may agree. Others use a special method of disregarding both the most expensive and the cheapest offers. How is it, then?

Recently I was sitting with a friend who was talking about garden shears. „I bought the more expensive type as I don´t want them to break in my hand“, he said. He didn´t want to sacrifice his finger for a better deal. To him, his health is obviously worth more.

Why are you, actually, more expensive and not the cheapest? I´m asking, because if you were the cheapest, you wouldn´t be complaining that someone has shot ahead of you with a better price, would you? If it is true that you offer basically the same or even less than your competition, then you have a problem. More often than not, however, you´ve got something extra, better service perhaps, quicker delivery, higher quality, a guarantee, no hidden fees that will unexpectedly surface later on. Reasons why you are the more expensive one are more than enough.   

However, how is the customer supposed to know this? You´ve sent your offer and are waiting to hear from him/her. And do you think you are the only one who has sent an estimate? And if your competitor, who is possibly more expensive than you, calls the customer and explains why he/she is the best, you will wait in vain.  

I strongly recommend you to call your customer a few days after sending a proposal. Just see how much your revenue goes up. It´s that simple.

P.S. Recently I was visiting a company that sells garage doors. I asked them whether they are in habit of contacting people they´d sent proposals to. The answer was quite “cute”. No way! We would have to hire more people, if there was more business.

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