Talk About Pricing – Award Winning Accountant
I want to talk to you today about pricing and how I see pricing being damaged from businesses Iwork with in the Profit Multiplier Program or just by visiting establishments around the world. Ihad that example today. I was at a supermarket and it was a local supermarket to be fair. Theycould tell I was a tourist.
Now I haven’t had this anywhere else in Chiang Mai before. So I think this was a bit – it waseither a mistake or an extraordinary mistake. Let’s be generous and let’s say it was a mistake. Iwanted to order a few bits and pieces that I wanted to have and the price came in at – let’s call it200 and one of my questions – because it seemed a little bit excessive for me. When I questionedit, it suddenly went to 110 and that’s a massive price drop, isn’t it?
Well, I haven’t changed anything. All I said is, “Can you just tell me again how much it was?”The price changed rapidly and fairly often when I talk to businesses, the slightest challenge tothe price, to their feed, to their income, the price quoted is often a drop. Now I don’t mean thingslike this doesn’t happen. I’m talking about professional businesses. Very often if somebody says,“How much?” or “Are you sure? Is that the best deal you can offer me?” straight away the pricedrops with no deduction in service. I think that is a mistake. I wonder if you – do you as a salesperson or does your team on the front line pricing things up. Do they collapse their price soeasily?
I’ve come across it so many times. Unless you’re a mystery shop, it’s really hard for you to besure because of course if you ask your team, “Do you price crash,” of course they’re going to sayno because that would just get them in all sorts of trouble. However, if you organise a mysteryshop, you might find that that’s exactly what happens and to the massive detriment of the sales,your margins, your trust, your profits, your cash flow. It hits everything, right? So let me leaveyou with that thought.
If you like some of these thoughts and would like more of them, why not come in and talk to us on our online free workshop?
