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Price versus benefits, versus features

Supplier: Jeff Hort Engineering By: Jeff Hort
18 January, 2010

All the business owners that I speak to are firm believers that their customers are 90 percent, if not totally, price focused when shopping around for their product or service.

We are constantly bombarded with signs saying 50% off, two for the price of one, SALE–SALE–SALE. But nothing is further from the truth. Price is just a reflection of value.

Value is about what your customers feel they will get when they purchase from you. I use this short story to highlight the following point. James was a hairdresser who has been running his salon for seven years. He was well known by the community and had a great reputation for his consistency, good manner and level of service.

He charged $12 for a haircut and felt that his clients were getting a great deal, especially since he had not put up his prices in five years.

Then one day a new salon opened up on the opposite side of the street. James was sure the competition would wipe him out of business especially when they started to advertise haircuts at $6.00.

After many sleepless nights wondering how he could combat such an aggressive move, James was at a total loss as to how he could stop losing clients. James was seriously considering shutting shop and quitting while he was ahead, until finally the answer struck him in the middle of the night.

The next morning a sign appeared on James's window that read:

"We Fix $6 Haircuts!!!!"

The moral of the story is, prospects do not buy on price alone, what they really buy is VALUE and CONFIDENCE - Confidence in you and your product. The question is how do you demonstrate value and confidence in your product?

Features versus Benefits
People buy what products can do for them, not what they are.

They buy because of convenience, peace of mind, economy, time-saver, reliability, money savings and prestige. When you start to sell the benefits (as against the features) of your product or service, you will have hoards beating a pathway to you organization's door.

Remember: Sell the sizzle, not the sausage. And nothing happens until you sell something.

Good selling!

Source: Company