Much of the complaints that we hear today from dealers and remodelers have to do with consumers being so dang price sensitive. But it takes two to tango here; what part do you contribute to this price sensitivity?
It’s All About the Approach
If you are using traditional marketing to attract your customers, what does your campaign talk about? Newspaper ads that say, “we will meet or beat any price” tell me that I need to shop around to baseline the relative value. Radio and TV spots that declare, “kitchens from as low as $X” also make me think that I shouldn’t have to look at higher end product because you’re selling a perfectly acceptable kitchen at a low price; why would I upgrade?
How about direct mail that promises, “up to 50% off manufacturer’s list”? Since I know nothing about what a kitchen should cost, don’t I now have to shop around to triangulate the value? (And what a bunch of hoo-ha manufacturer’s list is.)
We Do it to Ourselves
Yup, we make consumers think that kitchens are a commodity. Plus, they already know that design is a commodity since they can go anywhere (just about) and get a free kitchen design. Man, do we know how to set ourselves up to fail…
It’s All About Competing with Yourself
Set yourself up to market in the Greenhouse. It’s there that your voice establishes your brand as the knowledge leader in your market. If you become the trusted authority, you minimize the need to shop and invite customers in to do business that already has affinity for your brand.
Use a well-defined sales process. Define the process that everyone needs to follow and present your solution in a Best, Better, Good close (I assume you do close, correct?). By presenting three options, you allow your consumers to triangulate the price with you.
Define the process, follow-up on those that buy, and don’t buy and improve your process. Rinse and repeat as needed.
Finally, measure the progress through real-time dashboards. Know where your leads are coming from, see where your sales people are through an accurate forecast and take on a culture of continuous improvement.
Match your selling process to the actual consumer buying process and minimize price in the discussion. No, really, it could happen!