www.swimmingpoolnews.co.uk
Pool&SpaIndustry OCT 2011 SPN
37 ‘IT’S NOT ABOUT PRICE’
People will still pay more for good brand, good product and superior service, says Dave Gammon, a business coach and consultant who has a number of clients in the swimming pool and hot tub industry
“It’s all about price”. “The industry is being destroyed by low cost internet operators and deep discounters”.
The cry is almost deafening and don’t kid yourself it is just coming from the pool and spa industry. It is in every industry. Everything has a lifecycle and once products go mass market and sales volumes peak, there is an inevitable commodity phase at which point pricing comes under pressure until the market becomes saturated. Where do you think your industry is in the cycle and what new products will replace the saturated ones?
It is very convenient to find something to blame when sales are not holding up against your budget and there may be an element of truth that I can buy the same product that you are selling cheaper if I go online. It is easier for me to become a professional buyer of anything these days with all the information and opinions available to me via the internet. I even built and priced my next new car this week without having to go near a car showroom or salesman... but (and you might care to write this down) – it’s not about price, it’s not about price, it’s not about price.
If it was, Waitrose supermarkets would be shut down and BMW’s would be lying rusting at the dockside.
The truth is that people will still pay more for good brand, good product and superior service, even in an economic winter. If you are losing a significant amount of ‘quality’ leads, by which I mean those ‘A’ grade customers you love dealing with, then it is for one reason only. You are not giving them a reason to choose on anything else. Try out these four ideas in your business to move you clear of the price punch up.
FIND YOUR NICHE
“Think small. Think of the smallest conceivable market, and describe a product that overwhelms it with its remarkability.” Seth Godin. Stop trying to be everything to everyone and focus on what segment of the market you are ideally suited to serve. Be clear about the specific customers that you are looking for and focus on being the leader in that market. Focus on marketing to your target market by understanding who they are (age, sex, income,
lifestyle), where they are, why they buy your products and how they choose. The easiest way to find this out is to start asking them and gathering the intelligence.
DEFINE YOUR UNIQUENESS
If I didn’t know anything about your company and lined you up with two of your closest competitors what would make me select you? If all three of you are telling me the same thing, my only point of differentiation will be price; the very thing you are trying to avoid! What’s different about your business that would sway me and make me think twice if you were not the cheapest.
SELL FOR THE RELATIONSHIP People use a combination of 80% emotion and 20% logic in purchasing decisions (especially when it is a dream purchase like a spa or pool) so you have a much better chance of being chosen if the customer likes you and your business. The way to do this is to build a relationship with them. Asking them lots of questions and being helpful without putting them under pressure to buy, gives them a good chance of liking you. People love buying products that enhance their lives but they won’t like you trying to sell to them.
ADD VALUE, DON’T DISCOUNT
If you have no option but to come closer to a competitor’s pricing, then add value to the purchase rather than discount the price. Remember the customer wants to perceive that they got value in the deal. Add accessories, servicing or chemicals into the package rather than discounting. It can look more valuable to the customer, whilst being cheaper for you than flat discounting. It also looks far less needy than dropping the price every time you’re asked. For the good of your business, it is important that
you get past pricing as an issue. You cannot win every sale and some will go to discounters, but remember that people don’t predominantly buy on price and if you are focused on what you are really good at, and are prepared to invest in building a relationship with your customers, you can always get past price. People aren’t stupid and they know that cheapness generally comes at a cost.
For a free consultation on appying these principles or dealing with other business challenges drop Dave Gammon an email and he will get in touch (
davegammon@actioncoach.com)
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