Either you are in business or providing a service, you always keep looking for better price strategy. But have you ever thought why the customer would like to pay us more?
Thinking loud now ……
“You will only be remembered for two things: the problems you solve or the ones you create.”
More Thoughts !!
The answer is simple, the bigger problem you able to solve for the customer the better will be the price margin.
Wear the customer hat and think, at what point customer will be ready to pay you happily? When he is in deep need and you solve his problem. A person car broken on HIGHWAY where no one to help and you provide service at that moment you can definitely charge premium price and customer will be happy to pay.
What is a problem?
Every single product and service you buy is in some way a solution to a problem.
Now sometimes your problem can be very simple; for example “I feel hungry”. So you might buy a Burger and your problem is solved.
Your problem might also be very complex. “You want to lose weight and want to be fit” Your solution may be to go to gym or start playing sports.
How to solve the problem:
To solve the problem you need to fill the gap.
Look at: 1. what is the customer current situation
2. Where customer wants to reach.
The difference of these situations is Gap. Which you need to fill through your products / services.
Help customer to make the decision:
The biggest mistake we make is that we try to push the products which we have. First we need to check why a product is needed. For example: if a customer is looking for a camera, ask why customer needs that.
Then for what purpose he/she need the camera for personal use or professional. All these questions will help you to know the customer need/problem areas. Once you know the details then you can offer the right product.
One important thing is that we make the decision making process very difficult for the customer. If we can help them make decisions they will be happy and more inclined to come again. We need to put efforts to make the decision making process easier for the customer.
Simple example is: Restaurants
We all eat food at home but when we go to restaurants, we get confused with so many varieties or with name on the menu. Which makes decision making difficult, so if manager can ask few questions what customer would love to have or can explain different variety offered then it will easy for the customer to make right decisions.
So in order to get ahead in the race we
always need to deep dive
- To understand customer’s problem
- Need to ask right questions to know the details.
- Provide right solution.
- Help customer to make the buying decision easier.