Position Your Value, Not Your Price
By Bob Greenwood, AMAM
Business Coach, International Business Speaker, Instructor, Business Consultant, Author
Shops that have marketed their business based on price attract exactly what they went after, namely, price focussed people.
This definitely affects the very profitability of the shop as well as putting the team of the shop into a position of working very hard instead of smart.
Consider that in the Independent sector, we are a knowledge based business, a true profession today, and we must obtain the “right price” for the competency we must now deliver. We are responsible to the consumer, namely, truly educating them and counselling them personally on safety, reliability and efficiency of their vehicle based on how they actually use it and their expectations with their vehicle.
Understand this fact: “Knowing how to highlight and quantify value is a new skill set that must be embraced today.”
When you are trying to perform your function at the highest competency level and price that skill set right and then run into a consumer who questions “price”, learn to look at it this way; the price “challenge” is not an objection to what you are charging but a true indicator that the consumer does not understand the value to be communicated or quantified correctly in their mind.
Slow down and define the value to the consumer clearly that differentiates what you are offering. When it is done correctly the price issue just becomes part of the discussion and not the stumbling block you may perceive. This is a great discussion to have with you team, namely, “What value do we bring to the clients that deal with us over the competition”?
Review your value proposition and train your team members to understand it so they too can walk the talk that the business they work in is unique and they are very proud of that. Does your team truly “believe” they are working in a great business?
Also consider that spending more than the average time with a client is a tremendous value as well. To achieve this you must slow your business down. That time is spent listening to your new potential client answer your questions, such as, how many kilometers do you drive per year, is it highway, city or country/off road driving, do you own or lease you vehicle, what are your expectations with your vehicle? Get the conversations going so you truly understand the person’s personal situation rather than group everyone into a “seasonal service” mode. You will “manage” the vehicle on behalf of the client and it will be properly documented to their file. All future intervals for that particular vehicle will be investigated and set up based on exactly how the vehicle is being used.
Think the details through, and I believe you will clearly see what an incredible “value” you bring to the table because under your system, the client saves a great deal of money over the life of their vehicle.
