When we talk about creating an irresistable offer, many of our clients jump to the conclusion that we’re asking them to drop their price.
Nothing could be further from the truth.
Discounting your price is something we rarely advise clients to do.
It erodes your credibility, it takes the power out of your position, and it can kill your company.
Announcer : You are listening to aviation marketing Hangar Flying, the community for the best sales and marketing professionals in the aviation industry. You can’t learn to fly just from a book. You learn from other pilots who know the tools, the skills, and the territory. Your hosts John and Paula Williams are your sales and marketing test pilots. They take the risks for you, and share strategies, relevant examples, hacks and how to’s. Be sure to subscribe on iTunes so you won’t miss a thing.
Paula Williams: Welcome to aviation marketing Hangar Flying episode number four. I’m Paula Williams.
John Williams : I’m John Williams.
Paula Williams: We are ABCI, and ABCI’s mission is?
John Williams : To help all you ladies and gents out there sale more products and services hopefully quicker.
Paula Williams: Exactly. In episode two, we talked about campaigns and why we need to be running campaigns. In episode three, we talked about one of the three elements of campaigns. Right?
John Williams : That would be the list.
Paula Williams: Exactly. The three elements of campaigns are?
John Williams : Number two is the offer, and then followed by the presentation.
Paula Williams: Right, so the list, the offer, and the presentation. We’ve already talked about the list, so today we are talking about the offer. Let’s start with rule number one of offers.
John Williams : Never lower your price.
Paula Williams: Right. Never discount your price. We are also going to talk today about when to break that rule, but when we talk about special offers and things like that, everybody seems to automatically jump to the position. They seem spring-loaded to the opinion that they need to discount their price to make a good offer or a compelling offer. That is absolutely not true.
John Williams : Exactly. Recall from just living that all the car dealers, all the grocery stores, all the suppliers, all the aircraft manufacturers always, always raise prices annually, at least.
Paula Williams: Exactly. In the aviation industry, you can really do yourself a lot more harm than good by discounting your price too much. First of all, it erodes your credibility in your price.
John Williams : Don’t even think about discounting the price. You are in a race to the bottom if you do that. What you want to do is figure out the value added or the price that they pay.
Paula Williams: Exactly. People who bought from you last … Let’s say you do a 50% off sale, the people who bought from you last week are going to be really upset that they bought from you last week, and it looks you are rewarding bad behavior by making people wait for sales. We really, really don’t want to do that in the aviation industry.
John Williams : There is one time when you might consider it and there are others, but volume discounts, if you instead of one Gulfstream IV, you buy three, I’m sure Gulfstream is going to talk to you seriously.
Paula Williams: Exactly. There’s lots of things to do besides discounting your price. Another reason that you don’t want to discount your price is because you really want to maintain the overhead to have absolutely fantastic service. You don’t want to be in the position of being the low-cost option in your market. In fact, when people talk with us about marketing services and things like that and ask us to submit a bid, we tell them we are not even going to bother. If you are looking for the lowest cost provider of that service, that’s not the position we want to be in.
John Williams : Obviously, if the government were into marketing would put us out, but that’s okay.
Paula Williams: Exactly. A couple of alternatives to reducing your price are to increase value or to decrease risk. We are going to be talking about some options, we are doing that today.
John Williams : We’ll probably also talk about the rare instances when you might want to consider a discount price.
Paula Williams: Exactly. First of all, increasing the value of your product. There’s a bunch of options that you have here. The first thing you might want to consider is packaging or bundling your product with other items; with accessories, or training, or something like that that will improve your product’s performance, or its value to the person who is buying it. Let’s say that you have a software, a program, or a product that’s fairly complex. In a lot of cases it would be worth more to the person who is buying it if you also send someone to do training, and train their staff on how to use it. That would be a lot more value than simply the product itself.
John Williams : Or a money back guarantee.
Paula Williams: That’s actually under reducing risk. We’ll talk about that later, but anyway, packaging or bundling. Other things that you can add to the product would be a non-competing organization that might provide something similar. Let’s say people bring in their airplane for service, and you work with another provider at your airport who does detailing. You can have them come in, and you can schedule those services simultaneously, have some people working on the interior of the aircraft while you are doing work on the exterior.
Lots of ways to make this work. You can do packaging or bundling, or you can add convenience. Both of those increase the value of your product. It’s fairly simple to add a training or information product to whatever product or service that you have; “100 ways to use this product, or 100 tips for getting the best value out of it,” really improves the perceived value and also the actual value, realized value of the buyer. We get a box from a … There’s a