Monday, 28 March 2011
Who Wins a Price War?
I was running an MC Mastery workshop on Saturday and there were questions about pricing. In the industry some are charging 10 to 30% of what others charge.
I learnt early in the game "No One Wins a Price War".
Look at recent price fights with the supermarkets. Milk prices are down, bread prices down and beer prices were almost down. Supermarkets have long had "loss leaders" - products at or below cost to get customers in the store. They then make up the margin on other products. Customers get the illusion of a bargain but suppliers get taken advantage of! Dairy farmers make less profit per litre on milk than supermarkets do yet the farmers do all the hard work (I grew up on a dairy farm and know the large amount of work for the small amount of money).
CUB chose not to participate in a beer war but not selling product to the two major supermarkets. They also sent team members to buy back valuable brands of wine that were being sold below wholesale. Don't mess with CUB!
What about your prices? Once you have to start defending your prices, you are lost. Put your efforts into showing your value and how much it is worth and you stay out of a price war. Show your prospect what they get for their money. What intangibles as well as tangible products and services.
This is the same for employees. Don't ask for a pay rise because you haven't had one for over 12 months. Justify your pay increase or bonus request by showing how much value you have brought the business. Money you have saved, sales you have contributed to, and value you have brought to the business.
No one wins a price war, so don't even think about it. Focus solely on the value you are providing and make it a logical win-win decision.
Monday, 7 March 2011
I seem to have been surrounded by kids on the weekend.
- Friday night I was with my brother's three kids where we had an impromptu disco, karaoke, and singer impersonation session
- Sunday afternoon Wifey's brothers three kids dropped over as I was harvesting the sunflowers and in their excitement nearly slammed the car door on one another
- Sunday night was at a friend's place where their two kids were doing what kids do; sleeping on the dog, planning time to spend with Dad for the week, diving on the couch, showing off their chooks and vegie garden.
All my life I have been accused of being "childish". So many people have told me to grow up. A friend who works in Child Psychiatry said she would assess me at being about 14 years old. Legendary base baller Chili Davis is attributed to having said "Growing old is mandatory; growing up is optional." I believe we can be mature, professional and sophisticated combined with childlike enthusiasm and energy.
So who are you REALLY? Are you really how you behave or have years of "shoulds" changed how you are in the world? Does your inner child need to burst out and say hello?
Who are you REALLY?
PS I will be in Adelaide on Friday 15th April being childish with some non-profit clients. If you are looking for a workshop on how to Get More Sales or want to Ignite Your Team on Thursday 14th April, please email me!