An extract from the book ‘Stress proof your business and your life’ written for the clients of Keen Dicey Grover by Steve Pipe and Elisabeth Wilson.
“There are two types of customers: the good and the bad.
Bad customers send your stress levels through the roof with their complaints, unreasonable demands and broken payment promises. Bad customers are also the ones that really care about your prices a lot – since they are the ones that choose you because you are cheap, and will leave you the instant some else becomes cheaper.
But good customers – the honourable, decent, appreciative and profitable ones you want more of – care less about your prices. Obviously, price still matters to them. But the value in what your products and services do for them is even more important.
So, instead of competing on price, you should compete on the basis of giving the right kind of customers maximum value rather than the lowest price.
What is ‘maximum value’?
Essentially, ‘value’ is the gap between the benefits a customer perceives he is getting and the price he perceives he is paying. So offering ‘maximum value’ means offering a bigger gap than anyone else.
Competing on maximum value…
There are four keys to competing on maximum value;
- Make sure than your products and services are exactly what your customers, especially your ideal customers, need and want, i.e. they offer the best and most appropriate combination of benefits.
- Make sure that your customers fully understand those benefits – unless they understand that what you have to offer is special, they will assume it is average, and that means that you’ll only be able to charge an average price. So managing their perceptions is vital.
- Set your prices intelligently – having properly researched the facts and your options.
- Present, explain and defend your prices in the best possible way – using carefully chosen persuasive language in well designed marketing systems, sales system and objection handling systems.
.. and how it will reduce your stress levels
When you compete on maximum value several wonderful things happen.
You attract nicer people as customers. They are more appreciative of what you do. Any they complain less often. So you get fewer hassles, and doing business with them is more pleasurable.
Which means it is far more emotionally rewarding. They have chosen you on value rather than low price, which means they will be more loyal and you won’t lose them the moment a cheaper supplier comes along. They also pay you higher and more profitable prices, so it is far more financially rewarding for you too.
Which all adds up to less stress and more joy.”
Here at Keen Dicey Grover, we make it our business to build close working relationships with our clients and therefore to also know their businesses. It’s important to us that we ensure that financial information is created in a way that is suitable to their business and industry. This helps us to conduct relevant reviews of the business and its performance and take our time to understand the owner’s needs in order to support them and their business.
With over 40 years of experience, we work hard to provide visibility, eliminate the unknown and ensure our clients feel confident and informed about the status and future of their businesses.
Keen Dicey Grover
We care…….we really care
For more information please get in touch, we would love to hear from you