As we look at probable future challenges, I feel comfortable with the following
predictions:
- competition
in the marketplace will get keener
- decision
makers will become sharper and more discriminating
- margin
pressure will continue to impact our profitability
As we go forward, it will be necessary for us to carefully and strategically
sort out our options as to how we go to market. How we address the issues of discounting,
taking our creative selling efforts to new levels and maintaining our position as viable
and profitable organizations, must be a high priority.
I am often asked if I would rather be selling a product of the highest quality and
offering the best service at an upper level price or selling a product of marginal quality
with mediocre service at a much lower price. I will take the former over the latter every
time. People are more willing to pay for quality than they have ever been. They just are
not willing to endure the hassle that goes along with the compromises in quality and
service. It is easier to explain price once than to apologize for quality forever.
In our attempts to assess the mindset of today’s buyers, we find that people in
practically every industry want problem-free products and services that do the job for
them without requiring additional time and money to solve quality problems. You are
usually dealing with sophisticated buyers who know the significant cost of unanticipated
problems.
There are five types of differentiation salespeople should be aware of: product, price,
service, relationship and process. Do everything in your power to creatively differentiate
in any manner other than discounting. Get in your customers’ faces and serve them to
death. Make sure that everybody in the decision loop knows that none of your competitors
compare to your creative factors of differentiation.
Don’t give away your margin; give away your heart. Give your heart away through
extraordinary service and simple caring. Your heart will only get bigger when you give it
away. Give away your margin, and you will be mortgaging your future.
