INVESTMENTFUNDSSITE.COM

management vade mecum - www.investmentfundssite.com

Menu


  Technique # 2 - Monthly Installment Method   Offer to have your customer pay low monthly installments, rather than


one hefty price, then just advertise the monthly installment price. This gives the perception of a low price. Recently I sold a mobile home and noticed that people didnt really care about the price of the home; they were more concerned about the amount of the monthly payments.   Technique # 3 - Individual Value Comparison   This method takes each individual component of the offer, places a value on it, and then adds it all up for a total and then compares it to the asking price.   For instance, if you were in the hotel business you might say this, "your luggage carried to your shuttle van (value - $15), a swift shuttle ride directly to your hotel (value $35), your personal assistant to help you carry up your baggage and get settled in (value $10), premium movie channels for your viewing pleasure ($12), a relaxing overnight stay in your personal suite (value $189), and a hearty breakfast in the morning ($15) for a total value of over $260yours for only a small investment of $99. You save over $160!   Technique # 4 - Pain Avoidance Method   As a consultant I often try to put a price tag on the problem to give my client a realistic picture of what it is costing her to continue to do nothing. Then I compare it to my relatively small fee for helping to rid her of that problem.   For instance, the conversation might go like this   David: "Hmmm, so you have a theft problem in your stores?" Client: "Yes, its terrible"   David: "What types of things are being stolen?" Client: "Computers and software mostly."   David: "What do you think the average price is for the computers and software being stolen?" Client: "The computers cost around $1,200 and the software costs around $50.   David: "How many are missing on a monthly basis?" Client: "We usually come up about five computers short and probably about 20 different software packages are missing."   David: "Now this is happening in all your stores?" Client: "Yes"   David: "Well, lets see. From what you told me youre experiencing a shrink problem of around $6,000 per store and you own 12 stores so youre total shrink is costing you around 60,000 a month overall." Client: "Yes"