A Good Article On The Pricing Debate

Business By indydebi Updated 15 Mar 2008 , 7:17am by Tomoore

indydebi Posted 2 Oct 2007 , 6:13pm
post #1 of 16

I got this article in my weekly email from this sales guru. It addresses a LOT of things we discuss on here. What I found interesting was something that I've mentioned a few times: If YOU dont' understand the value of your work, how can you convince others of the value of your work? .... which is almost word for word what this guy says in this article. (Hey! How come I"m not getting famous and rich for this sage advice, like this guy! icon_confused.gificon_lol.gif )

This articles talks about a salesman who projects his OWN personal buying habits onto his customers.

Exerptsicon_sad.gifbolding added by me)

"The discount-requesting client hadn't yet seen the obvious source of his behavior a deeper value which held that nothing is worth the price that everything can be discounted. The subconscious thinking goes like this: If nothing I buy is worth the price, then that must be true for my customers as well."
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"Before you start blaming the customers for holding out for a lower price, ask yourself what you might have done to instill that idea in them. Reflect on your attitude and your values and see if the root of the problem isn't there."
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"I often respond to a salesperson who asks, "Why do I always have to be the low price" by asking this question, If I'm one of your customers, why should I pay more to buy it from you?

The overwhelming majority of the time, the response I get is silence. They can think of no reason someone would pay more to buy it from them. They see no added value to their company's offering. And, since they don't believe that they have added value, they certainly can't convince their customers of something they don't personally believe."

Entire article:
http://www.davekahle.com/nl/october07nl.htm

15 replies
cakesbycathy Posted 2 Oct 2007 , 6:22pm
post #2 of 16

Really interesting article!! Thanks Debi!

Kiwi777 Posted 2 Oct 2007 , 6:27pm
post #3 of 16

This is a really invaluable article. Personally, I short-change myself all the time and I know it has to STOP. Thank you so much for sharing this. I'm sure a lot of people can benefit from these words of wisdom!

pidge Posted 2 Oct 2007 , 6:31pm
post #4 of 16

very true ... hence why i always discount before the customer asks for one (because technically i fall for any sales gimick -- 2 for $5 IS SUCH A BETTER DEAL than $2.50 each icon_confused.gif ... yeah, that's why i'm not rich and famous!! icon_redface.gif ) but knowing the reason makes finding an answer easier ... i'm off to pay full price for something! (unless i run into a sale first!)

indydebi Posted 2 Oct 2007 , 6:39pm
post #5 of 16

oh, pidge, you crack me up!!

I'm always arguing with hubby when he goes to the grocery, because he thinks if they are 2/$5, then he HAS to buy 2 of them! I try to explain that unless it says "$2.79 each OR 2/$5", then they are $2.50 each no matter how many you buy! He can save $2.50 by buying just ONE of them! icon_surprised.gif

Erdica Posted 2 Oct 2007 , 8:01pm
post #6 of 16

Thanks for posting this. It really makes you think.

I think it's hard starting up because you do doubt and have second thoughts. Eventually you get over that. Now for me it's...this is the price. If you don't like it, there's a Kroger 2 blocks that way and a Wal-mart 5 blocks that way. Good luck.

I've come to conclusion that I am not going to chase business or beg for it. I believe in my talents and my quality of work.

Now I should go post in the All Praise IndyDebi folder! icon_biggrin.gif

cakesbycathy Posted 2 Oct 2007 , 8:50pm
post #7 of 16

Thinking more about it...
while I totally agree with the point the author was trying to make, I also think he might have used another example besides telemarketers. I don't know ANYONE that actually likes a call from one! LOL

indydebi Posted 2 Oct 2007 , 8:52pm
post #8 of 16
Quote:
Originally Posted by cakesbycathy

Thinking more about it...
while I totally agree with the point the author was trying to make, I also think he might have used another example besides telemarketers. I don't know ANYONE that actually likes a call from one! LOL




Thank God for the Indiana "No Call List" law that was passed a few years ago! I don't have to deal with these calls anymore! thumbs_up.gif

JanH Posted 2 Oct 2007 , 9:27pm
post #9 of 16

Shakespeare summed up belief systems succintly:

"Nothing is (either good or bad) but thinking makes it so."

khoudek Posted 2 Oct 2007 , 9:43pm
post #10 of 16
Quote:
Originally Posted by indydebi

oh, pidge, you crack me up!!

I'm always arguing with hubby when he goes to the grocery, because he thinks if they are 2/$5, then he HAS to buy 2 of them! I try to explain that unless it says "$2.79 each OR 2/$5", then they are $2.50 each no matter how many you buy! He can save $2.50 by buying just ONE of them! icon_surprised.gif




OMG, I sooo agree! My husband will come home from Costo's or Sam's with these big economy items and fail to understand why I get upset. I try to explain that he isn't saving money when it is just the two of us eating the stuff. Things go stale or bad long before we've finished the container.

dflorita Posted 2 Oct 2007 , 9:44pm
post #11 of 16

Okay, cake gurus . . . I'm new at this and need advice. How do you respond when a bride (or her mother) ask right off the bat, before the tasting ritual thingy, 'so how much do you charge'. I doesn't really seem to me that you'd want to start out answering that question. So how do you handle it?

indydebi Posted 2 Oct 2007 , 9:48pm
post #12 of 16

My prices are posted on my website so they know the price before they walk in the door.

If you have a price that is based on the cake design, I would offer them an answer such as "It depends on the design you select .... the more elaborate, the more the cost. My base price starts at $xx.xx per person. So.... what kind of design were you thinking of?" When you end with a question, it puts the control of the conversation in your hands, not in theirs.

THey are looking to see what price range you are in, to give them a general idea.

And, personally, I'd prefer they know my pricing before they waste my time showing up for a sampling, just to tell me their budget can't accommodate my prices.

dflorita Posted 2 Oct 2007 , 9:56pm
post #13 of 16

Ahhhh, you are such a SUPERSTAR! Thanks Indydebi, I appreciate that!

ziggytarheel Posted 2 Oct 2007 , 9:58pm
post #14 of 16
Quote:
Originally Posted by dflorita

Okay, cake gurus . . . I'm new at this and need advice. How do you respond when a bride (or her mother) ask right off the bat, before the tasting ritual thingy, 'so how much do you charge'. I doesn't really seem to me that you'd want to start out answering that question. So how do you handle it?



I hope you don't mind someone not in the cake decorating business saying something on this subject. icon_biggrin.gif

A lot of people are like me...before they allow their hearts to be taken by anything, they take a look at the pricetag. It seems to me that it could save a lot of time and energy on both the buyer and the sellers part for everyone to have an idea what they are talking about before they get started.

I was the kind of bride who had to shop the sale rack for her wedding dress...but I still got a dress I loved. The style was me, even if the dress wasn't made of the finest silk or lace. Likewise, the cake was important to me, but just because it was important didn't mean I had the money to buy what I wanted. I didn't begrudge anyone the prices they charged, I just had to be realistic. I was able to find a decorator with a lovely shop and very nice work which fit my budget.

But, I did meet with people who wanted to go into a long presentation before they would mention price, and once they did, well, I just felt like we had both wasted our time.

Does that make sense?

Now that I read what IndyDdebi wrote, I probably didn't have to say anything at all! icon_biggrin.gif

dflorita Posted 2 Oct 2007 , 10:04pm
post #15 of 16

Well, Ziggytarheel, I appreciate your comment just the same as Indydebi. You guys are just awesome and I so appreciate your help!

Diane

Tomoore Posted 15 Mar 2008 , 7:17am
post #16 of 16

Save...sounds like a must-read

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