If this is your first time visiting, you can receive this blog by RSS Feed or email .

Think about your own buying experiences. Have you ever really believed that you were paying the very lowest, cheapest, down in the dirt “total-cost” for what you were buying at the time? The truth is, you weren’t. It’s impossible. Your customers know this truth as well.

Let’s define “total-cost.” Total-cost = the direct cost of the item or service + any associated costs for procurement.

Why is it that we and our customers can never be assured of the best total-cost on anything? There are three primary reasons:

1. Prices are never static. One vendor might have a great price at the moment but 30 minutes later another vendor has a lower price. This has always been true, but the Internet has made pricing even more fluid.
2. If a particular vendor across the continent has great pricing, but transportation costs inflate the price by 50%, this vendor’s pricing doesn’t look so competitive anymore. This would include freight on products and travel expenses related to services.
3. The cost to research and find the best price can far outweigh any savings. Spending an entire day researching the best price for the purchase of one $2.57 widget wouldn’t be the smartest investment of an employee’s time.

What’s liberating about this is the realization that at some level our customers know that they are always paying something extra for included value. That value could be the availability of the product, location of vendor, simplicity of ordering, speed of shipment, reputation of vendor, quality of service, relationship with vendor, etc.

Smart buyers are looking for the best total-cost solution, not the best price.

Our customers know they’re never going to be able to nail down the best price on any product or service they need. Knowing this, it’s our job to show them the added value we bring in order to show them the best total-cost solution and make their buying decision easier.

To receive this sales tips blog by email <click here> to receive by RSS <click here>. © 2008 Scott R. Sheaffer

Tags: pricing

We'd like to hear your feedback on this post - feel free to comment below!