There are two reasons your company needs a strong deal.
- The Competition. If you’re don’t genuinely have the strongest deal to offer customers, then you start with a handicap every time you try to advertise. Not a great place to be (behind the competition) when you’re paying for advertising.
- The Customer. To make the sale you need the customer to see more value than the price you’re asking.
Most companies offer what they consider a fair deal, but it’s not as fair as they think.
What’s wrong with a fair deal?
When we offer our product or service for $X, we think it’s fair – measured against the benefits to our customer. But here’s the truth: It’s fair if everything goes perfectly.
We are intimately familiar with ourselves (as people), our skills, our experience, and our process for getting the job done, and therefore we are highly confident of getting the job done. On the other hand, our customer often:
- Doesn’t know us personally
- Hasn’t lived through our experience
- Hasn’t seen our skills first hand
- Doesn’t know our process as well as we do
So in their mind there are several risks involved with handing over their hard-earned money to you. You might not be ethical, you might not be as good as you say, the project might run into problems, and so on. They are also carrying any bad experiences they’ve had in the past with other service providers (and not just in your industry). So in their mind the value of your service often falls below your price after they factor in their risk.
So what can you do?
Since customers see more risk than you do, many of your potential customers will value your service lower than you do. So how do we get them to see more value?
1. Reduce their risk. You can lessen the fears of a potential customer during the sales process with:
- Free trials
- Client success stories and testimonials
- Educating the client (quality of work, materials, safety measures)
- Demonstrating your professionalism and customer service in your initial interactions
You can lessen their risk and their fears (see more ways here), but you cannot remove uncertainty completely. So we need something else.
2. Give them more. When you give a deal well in excess of the price you’re asking, then you give them the opportunity to decide “I’m getting so much here that it’s worth the risk” or “I’m getting so much that even if it doesn’t go perfectly it’ll still be a good decision.”
Think of those late night infomercials. Products sell in the millions because “with all those bonuses it’ll be a good deal even if the knives aren’t as good as they say”.
The art of the unfair deal
The point to take away is that you must offer a better deal than you think you need to. That doesn’t mean cutting prices, because there are many other ways to improve your offer. To build a better offer, ask these 4 questions, and review ALL of the elements of your offer.
It takes an unfair deal in the customer’s favour before they will consider it fair.