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Wednesday, September 29, 2010

When price is more important than service

If you have recently gone shopping for electronics, you would think this to be true.

Rows and rows of goods are presented with splashy “sale” prices.

Most sales staff don’t engage too heavily, they just give you a price, you play the bargaining game, they reduce the price a little, but you don’t buy.

What do most people do?  They compare prices.

Price doesn’t kill service, people do

With the same product, same store layout, similar prices, you would think the lowest price gets the sale. Wrong, the best service still gets the sale, as long as the price is competitive.

The normal shopping pattern – is not normal

The normal pattern is to:

1.     Find a cluster of stores.

2.     Walk around, and receive varying levels of service.

3.     Narrow down to a product, or two.

4.     Revisit the earlier stores and compare prices for the specific products.

5.     Perhaps look online.

6.     Buy the cheapest price.

All correct except the last point.

The customer will buy from the last store to give a ‘good’ price and the best service.

Too many of my clients think that price is the most important thing. The customer thinks it is; they say it is; they act like it is; but it isn’t.

What do you think?

3 comments:

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Phillip said...

You totally got the best idea here, man! Now it hits me as a customer. You are so right when you said that it isn't the price that makes the sales, but the best service. Just like when outbound call center agents rings a customer to pitch a service, it really makes a big difference when they do it with confidence, politeness, and how they motivate the buyer. That's how they close the deal. So, I guess price doesn't really says much, huh? Nice post, Steve.