Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

Prevent your customer from seeing your product as a commodity



Free PDF Download
Adapting to Technology and the Internet - By John Brennan

Name: Email:


The first step in problem solving of course is to define the problem in customer terms. For example, perhaps you distribute office supplies to small to medium size retailers. Your customer is a regional office supplies retailer who has just opened two new stores , for a total of seven , and invites you to bid on supplying note pads. You have positioned yourself in the market as the supplier who provides solutions, not the one with the low cost products. So you ask a few questions about the supply chain.

You: Who's your internal customer for our note pads?

Customer: The paper supplies manager in each store.

You: What are the challenges they face today?

Customer: Move more product.

You: How are they going to do that?

Customer: Don't know. Got any ideas?

You: a dozen but they are only half baked. What do their customers, the consumers want?

Customer: Low price.

You: I understand that you offer the full range of note pads from the major manufacturers. I'm not interested in getting into a bidding war with my competitors, but I'd like to earn your business.

Customer: Then give me your best price.

You: What if you and I could help your department managers move more product? That's the ultimate goal isn't it? Is that what your performance is measured on?

Customer: Well, yes, and I have to show savings too.

You: So here's my idea. I supply you with note pads that will give your department managers something fresh to promote. I can't guarantee it but they should be able to improve their volume as a result.

Customer: Fine but I have to have low price.

You: Of course. The fresh idea is to put your label on the note pads and sell them as a new, high value, house brand, at a price significantly lower than my competitors. It will create a buzz, and your managers will easily beat their targets. Now to get the low price you have to make a trade off, in this case it will be thinner sheets, but still good quality paper. This solves both problems, right?

Customer: It might. It's worth a shot. What's your price?

You: $XXX, which is about 10% lower than you'll find anywhere. And that's with your brand on the product. Of course you should probably double the quantity, because your managers and your price sensitive customers are going to love it.


Related Articles

  How to Raise Prices
  It's All In The Stories
  Telemarketing Services for Unconventional and Commodity Products or Services
  Top Salespeople Avoid Commodity Selling
  Fiat Money Vs Commodity Money-A Raging Debate
  It's The Experience, Stupid!
  Selling Value Vs. Being a Commodity
  6 Steps Up the Ladder of Sales Success.
  Totem's segmentation game
  Do You Have A Commodity Mindset?
  If You Are Not Relating You Are Not Selling!
  Marketings Greatest Enemy
  Win with In-Store Service
  Dealing with Difficult Customers 5
  All Customers Care About Is Price?
  How to Become a Successful Commodity Trader
  Cold Calling Should Not Create the Sales Catastrophe of Becoming a Commodity
  How to Differentiate a Commodity Product
  Six levels of competitive readiness: How to get ready for the ambush...
  The Trusted Sales Authority

Home > Sales > John Brennan > Prevent your customer from seeing your product as a commodity >

Free PDF Download
Adapting to Technology and the Internet - By John Brennan

Name: Email:

About the Author: John Brennan

RSS for John's articles - Visit John's website
John Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses.
Click here to visit John's website.
Dashed Line

More from John Brennan
Webinar Plan
Campaigns to Customers
Internet Marketing Campaigns
Measure Customer Loyalty

Related Forum Posts

Build around a customer Build around a customer
Important tips for online business Important tips for online business
Hello Everyone!!! Hello Everyone!!!
Starting A Business Starting A Business
Re: When do you process online orders? Re: When do you process online orders?

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause
Featured Expert
Leanne Hoagland-Smith
@coachlee
Visit website



Worksheets
By: Evan Carmichael

Do you have what it takes to be an entrepreneur?

8 Powerful Steps to Finding Your Passion

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Hire the Best Staff - Part Two 'Selection'

10 Common Business Planning Errors

Thrilling Thursday - Life After Demotion

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.