As a manufacturer, we are many times faced with the challenge of explaining why our product cost more than some of our competitors. Even though I truly believe in the quality of our spa covers, I always dread this conversation. I think most consumers (myself included), look for the best bargain....It is not like I walk into a store saying "hey, where is your most expensive tv...I'll take it". We are born to bargain...in our personal lives as well as our professional ones. Unfortunately, in our quest to find the cheapest price, we also many times sacrifice quality. For example, let's talk shoes (I know, I know...I am a female...shoes are important). When I am buying a new pair of shoes, I know I want them to last more than a couple of years, so I go for quality. I could buy the cheaper shoes, but they may only last me a year or two at best. Why do that, when I can pay a little more and have them for several more years? I am not willing to compromise when it comes to my shoes.
So...the challenge....explaining the "shoe" philosophy to our customers. We (as in Blue Water Spa Covers) may not have the cheapest prices, but we do have great quality. Do you want your cover to last a couple of years or five or six? I like to think of us as a package deal...not only do you get a great product, but you get fantastic customer service...you become part of our family....it's like buying the shoes, and getting a matching handbag for free...or more simply put for the men....it's like buying that big screen tv and getting the universal remote for free.
In the long run, going for quality is the bargain. It may cost more upfront, but the product will last longer. Instead of buying two in five years and doubling your spending, you can purchase one good product that will last five years and keep some of that cash in your pocket.
Comments
If they see the item priced on the sales floor, it will either be a good price or a bad price to them. If the price is "bad" or too high they do not typically ask why the price is higher. The price does not convey to them that there is a better warranty, that it is US made, etc. Also if a customer only looks for one item and they deem that price too high, then they will assume that the price is too high on everything.
On the other hand if the item is not priced or they cannot find it on the sales floor they will have to engage an associate. This can go one of two ways depending on the associate. They will either give them a price and end the conversation there, or they will ask qualifying questions to create a conversation with the customer and give them an opportunity to explain the differences between product A and product B.
The retailer must be very concious of what they have on their floor, who they have working on the floor, how their pricing/signing is done and the differences between what they carry and what the competition has.
I subscribe to a daily marketing e-letter by BenSettle.com. It is fantastic and I recommend it to everyone here. Today's email particularly applies to this topic, so I thought you all might like to give it a read:
http://bensettle.com/blog/wal-fart-and-failure/
Enjoy!
But there are a great deal of customers out there who just need to understand WHY your products cost more, and, if the reason and the price increase are understandably related, they will be willing to see the light. You may have to listen to their concerns before shouting your "Buts" and "Althoughs" at them, but if each customer is approached according to THEIR needs and wants, quality will always win.