Lower price = more sales = more profit ?

Got further discount ? Free gifts ? Free installation ? Very popular questions faced by salesman whenever they try to close deals. And sadly the answers are always the same. I came across an article with an interesting but very true statement: "Every time you discount your product or service you discount yourself and eat away your profits." If customer is looking for a better deal, it is not really necessary to lower the price. So, the ultimate aim is to give as little as possible to close a sale. Sounds impossible ? It can be done. Negotiating is not always about price. Although price is virtually a factor in every sales, it is not usually the primary or motivating factor. Rather, what we say, or our approach towards the customer in the very beginning will affect the value of the product or service in their mind. I was going through a monthly duration report of the units that my department took in for service and repairs. For the last few years, it have been my routine to do a spot check for any mistakes or loopholes. This time, something caught my attention. It was not only the total number in figures and quantity. But it was also the duration itself. What amazes me is that 95% of the units taken it were completed and collected on the same day itself or the next day (still less than 24hrs). And a total 30 out of 76. 10 units were completed within 2 days, the rest took up 3-4 days. And what astonishes me was: these repairs were billed @ $50 each. And those that take 3-4 days were billed @ $64 which is the normal service rates given by the company. And the important factor that causes the $14 discount = membership. Without fail, the department hits the membership quota every month. The boss is satisfied, the management is satisfied. But my guys really need to ask themselves: is this what they really want ? Or they forgot their primary goal ? Yes, no doubt they act according to a motto that I have established: F.E.A.R = fast.efficient.and.reliable. It is time to look back at how far I have came through to build a reputation, to build a brand, as a one-stop IT services centre for consumers. However, the profits that I reeled in, were not as promising as I thought. Yes, business has ups and downs like stock market. But when it is down, I will need to come up with counter-measures to ensure there is always a gain, never a loss. Hey, it is business after all. Sudden promotions, free bundles even daring tactics have been tried and tested but none were as effective as they planned to be. Perhaps the thing to look at is still the manner in which the message is conversed to the end user. Every customer who walks in is like giving you the sales person an interview. And the underlying question is: Why should I get this from you when I can get is somewhere else and even cheaper ? An important answer that all my sales team should know: service. Not just normal service. Premium service and after-sales support. Yes. It is rare to encounter such now days. Sign an invoice and the sales man will thank you for that and never hope to see you again in the event of a problem - unless you are back to further fill his pockets. I am here to look into the various issues faced after the sales are closed. As a counsellor. As a mediator. But what the customer always have the impression : after sales service is good if it is free. After sales service is good if there is compensation for any inconvenience. My dear customers. Let me humbly remind you that that like you, anyone of you out there, we are also workers. And no one likes to work for free. Right ? I may charge a premium (seems alot from customer's point of view but still alot lesser than the amount stated by the company) but I guarantee that you get what you pay for. However, I need to cater to the needs of everyone, in particular the average joe who does not need all the bells and wishes but still need the job done. Don't fret, there will be a right pricing just for these group of people. I have asked my guys to come up with a pricing and other offers. I am currently going through it and plans to roll it out this coming October. It may not be the best deals in town but hey in this world, you can't please everyone. Give up something, or lose everything. Your choice.

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