Value versus price

I have almost always sold the most expensive item in my market. Does that mean I always discount? Nope, rarely a need.

By learning the value I and my company bring to the table I BELIEVE that I am the lowest cost option.

Years ago I was selling Mack Trucks. A tender opened and mine was the first package opened. The comment was; wow only $65k and your truck is good for 10 years. We don't need a vehicle to last that long; we only expect 4 years and fix them for 2 more then replace them. That works for us. The other bid packages were all around $40k and the comment was; "Great we will save $25k"

My ego kicked in and I tried to 'reason' with them. I asked them to clarify for me that spending $40k saved $25k?" Yup!

OK then, so you spend $40k on a new vehicle for 4 years, fix for 2 and sell for the cost of the 2 years of repairs. Then, 6 years on you buy another for $40k? So you are saving $25k?

Yup.

So my truck is $65k and good for 10 years? Yup. Therefore fixed capital cost is $6,500 annually? Yep.

The truck you buy is $40k, blah blah blah. Let's do the math.... 40 + ? + 40 over 10 years equals $80k or $8k annually on capital cost.

Yup, we are saving $25k.

Aaaaarrrgh!

The bid process prevented me from building value. I was not in on the process early enough to impact the decisions.

Another time I made a cold call on a Fire Service and found them in the process of determining the specs for a new vehicle.

Value became the word for them. We worked on the specs and went to tender. The only one able to meet the chassis bid was..... me. 25 years later they just decommissioned the vehicle and sold it. The cost did not matter, the value did.

I was able to keep my ego out of the equation because I was in early on the work and established bona fides early. We worked together to arrive at a conclusion and achieved the results they wanted.

The worst customer is the one you have to take from someone else. They have a vested interest in defending their purchase decision. They will defend their vendor even if they are unhappy. It allows you to open the door to put your feet in because your ego demands you win every time. You end up with a clash of ego and you will always lose.

I take the position that I am there to help them, to ensure they have a positive experience, to save them pain.

Often my best referrals have come from these clients and they become champions for me. All contracts end and if you are there early, often and regularly they will have a reason to continue with you.

Be persistent, consistent and professional. Doing that reduces your ego because you do not need them to like you any more; they need you.

Thanks.