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Edmonton Business Coach | Lowering Price Is Not The Answer
The Nissan versa comes up year after year, usually in the top five of the lowest cost of ownership vehicles. But nobody drives a Nissan versa because it’s a crappy car. It’s ugly. People don’t like to sit in it. It’s not comfortable. Um, it doesn’t look cool and nobody drives it. So even though it’s a solid financial choice, it’s the cheapest choice. Nobody drives it. But people think that you know, their business, if they sold the Nissan versa, they would. So a lot of them. Uh, but that’s not the case.
Yeah, I can see why I can be [inaudible] cause it’s mad.
Hi. Thanks for joining us for another episode of ask spurl CPA. Today I’ve had a business coach. We’re talking about how lowering price is not the answer, lowering prices, not the answer. Um, I have may here with me from the firm again, so me, do you ever buy things?
Is that at the lowest price? Yes. Yes, yes. Happen. And it’s based on the quality. Um, sometimes lowest price doesn’t always mean the best quality. That’s right. Or vice versa.
Yeah. One of the quotes that we have here, you don’t really relate to that. Zig Ziglar quote, it says, if it is unwise to pay too little, when you pay too much, you lose a little money. That is all, but when you pay too little, you sometimes lose everything because the thing you bought was incapable of doing what you wanted it to do. The common law of a bit of business balanced prohibits paying too little and getting a lot. Uh, there’s a statistic that we have here at 50% of all kidney visible go out of business. And the first five years and 29% of these failed businesses we’ll run. We’ll list running out of cash is one of the primary reasons for their failure making that the second most common reason why businesses go out of business is running out of cash. And the story that we, you know, we run into all the time or business owners think that price is the thing that customers value the most.
So me, what are the questions you think these business owners should be asking? Well, why do you like to talk about the Nissan versa? I love to talk about the Nissan versa because it is consistently year after year ranked one of the lowest cost of ownership vehicles. So when you talk about, you know, rates a depreciation, gas mileage, and repairs and maintenance, the Nissan versa comes up year after year, usually in the top five of the lowest cost of ownership vehicles. But nobody drives a Nissan versa because it’s a crappy car. It’s ugly. People don’t like to sit in it. It’s not comfortable. Um, it doesn’t look cool and nobody drives it. So even though it’s a solid financial choice, it’s the cheapest choice. Nobody drives it. But people think that you know, their business, if they sold the Nissan versa, they would. So a lot of that. Uh, but that’s not the case.
Why are people cell phones or close good examples of how price is not number one?
Yeah. So it’s the same thing. All of your Edmonton Business Coach clothes, they were probably not, but bought at value village or goodwill. Um, that would have been the cheapest option. But you didn’t do it. You look at your cell phone and you, you probably have this contract and, and uh, you know, you contracts costing you 50, 8,000, hundred and $50 a month, um, because you want this, you know, shiny new iPhone or Samsung. Uh, and, and meanwhile you give $20 gas a gas station phone and it would call and, and tax if you want up. But that’s not the one you have. So again, we keep continually run into example after example in our own personal life that we’re not buying the cheapest product or service, but we think that that’s the way to proceed in an Edmonton Business Coach.
What’s a difficult fat to business owners who can only sell on price have to face.
So here, here it is. You know, they’re coming to the realization that the only way I get the project, the only way get the client. Then the only way I sell my product is the buying the cheapest. The really difficult situation, you know, thing that you haven’t faced is your, you, your Edmonton Business Coach product, your service, your value proposition, your Edmonton Business Coach sales presentation. It’s sucks. And that’s the real difficult part that they have to face is that it’s not being delivered well enough. So, um, once you come to that, you know, conclusion, once you come to that have that you humility to actually recognize that now you can actually move forward. But it’s a very difficult thing to face and it’s unnatural to face that because you know, you’re super passionate about it and a lot of times, uh, the product or service is good, but they’re unable to communicate the value of it. But you know, it’s that sales presentation, it’s that, you know, marketing presentation. It’s not building the valley and sometimes it is the product or service itself. Sometimes it, it does need to get better. Um, you know, it’s not a reflection of the business owner, it’s just a reflection of where we are in that business. And once you recognize that, if the only way you’re, you’re making sales, if you’re the cheapest, we’re doing some things wrong.
If you continued to sell on price, will you have to cut come comers on time and product?
Yeah, yeah. You will have to cut the corners on time. And products. So you’re going to have to use cheaper products. You’re going to have to spend less time than is necessary to deliver quality product or Edmonton Business Coach. So, uh, you know, eventually you just won’t be delivering a quality product or service because you have to spend less time and use cheaper products and they just, you know, it’s a common law business that zig Ziglar talks about. Um, you know, it just, it prohibits you from paying a little and getting a lot. Like it’s just not like going to be sustainable over a long.
Okay. If you continue to sell on price, will you eat, be able to afford quality team member?
No. So if you want to be the cheapest, that means you also have to have the worst employees. You have to pay them the least. Do you have to find, you know, people, uh, you know, the absolute cheapest and, and you know, put the, treat them the worst on what the perks that they can actually get in their Edmonton Business Coach. So, you know, if you want to be the cheapest, you have to cut corners on time, you have to use the cheapest products and you have to hire the worst team members. Uh, because that’s the only way to be the cheapest. I customers will only value price. Generally customers. Yes. So that’s the other thing is generally the customers who insist on the cheapest, you know, there are things that we’ve probably insistent in our lives that, okay, I’m just going to buy the in the cheapest option.
You know, it’s because we didn’t care at all about that. You know, that thing we were buying was just, we almost maybe never bought it at all or we don’t value it at all. Uh, and so those people aren’t going to be good customers, you know, one, if the ones who are looking for the cheapest, um, they’re generally going to be the worst customers. They’re going to complain the most. Uh, they’re the ones who are not going to pay you anyways. Um, you know, those are the ones that you probably don’t want anyways. Do people value features and functionality? Absolutely. Yeah. People value. Okay, this one has, you know, this, you know, it has a longer warranty. Um, this one has a, you know, go back to the phone example. Uh, this one has a better camera resolution than the other one. It wasn’t the cheapest phone but it had a better camera resolution.
So those features and functionality, those are going to be equally as important as you know, the, the price. Do people value quality? Yeah. Quality is a huge one. People, you know, don’t want to buy something that’s going to break and they don’t want to buy something. They’re buying something to solve a problem. They don’t want to buy it and you know, have that risk that they’re not going to solve that problem after all, um, you know, I’m going to buy that Edmonton Business Coach versa, but it’s going to break down and thought the most reliable. It’s going to be a store where it’s cheap to fix, but why did it break in the first place? Um, you, it’s not comfortable for me to sit in. They, they value quality. People will value quality. That’s a big one. Do people value back? Yeah. People also value the reputation of the company because no matter what you’re selling, they don’t know.
Even if you have more features and functionality, maybe you’re telling them it’s a higher quality, but if you don’t have that reputation to back it up, they just start to think that everything that you’re telling them is not accurate anyways. So you know, people value that reputation because it lets them know that if two companies are promoting the same product or service at the same price, even if you know, maybe the, the person with less of a reputation is cheaper, they’ll probably pay more for the Edmonton Business Coach with the higher reputation because they actually believe that they’re going to deliver on that product or service. They’re going to have those features and functionalities. They’re going to have the quality that they’re stating. Do people value speed
Hello, is that people always value speed and convenience. I mean, why convenience stores exist. Everything is cheaper at the grocery store all the time, but it’s not as convenient. You know, there’s people who, you know, make a lot of money and taking stuff from the dollar store and going to list it on Amazon. Um, because it’s more convenient to buy it on Amazon than it is to go and hunt through the bins at the dollar store. You just want to have it delivered to our house so people will pay more for speed and convenience. You know, it’s one of the, the, uh, um,
biggest considerations for sure. It’s customer experience, likely the most underestimated the consideration. Yeah.
So then when we get in this very, really analytical mindset of, okay, it’s features and functionality, it’s quality, it’s the reputation, it’s the speed and convenience and nose are, you know, easier to quantify metrics, but people buy from people that they like and they’ll spend more to, for good experience. You know, when people have a bad experience at a restaurant or an airline, they’re not coming back and they don’t care if you’re the cheapest the next time. Um, you know, people are, it’s about how you make them feel a lot less time. Although that sounds strange and people think, well, no, you just buy the cheapest. It’s not the case. You know, people are probably, this is the one that people are missing the boat on the most is what is the, you know, what does that customer experience like from the minute they call the first time to the followup a year after you did the job?
You know, what does that entire customer service, uh, you know, customer experience look like? It’s the one that most business owners are completely forgetting about when it’s one of the most important altogether. So I think that’s what we have here today. Thanks so much for joining us. As always, we, you know, we value any, any comments that you’d like to leave so we can respond back and use your Edmonton Business Coach comments for content of future videos and please leave, please like and subscribe. So we continued delivery tips on how to beat the odds of business. Thanks very much.