Article Number : 4269 |
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| Date | 3/9/2009 9:54:54 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4269 |
| Abstract | I very much enjoy your articles, have read your books over and over and use your layout tool. I agree with your approach to sales. I have been in the sales part of this business for 10 years now after 20-plus years as a vinyl and carpet installation mechanic... |
| Article | FCNews’ columnists are consistently called upon for their expert advice. From time to time, they receive a query that many of our readers may also have. Such is the case below with a question for Kelly Kramer, author of the “Retail Education” column. The original question is followed by Kramer’s answer. What exactly is a fair price? I very much enjoy your articles, have read your books over and over and use your layout tool. I agree with your approach to sales. I have been in the sales part of this business for 10 years now after 20-plus years as a vinyl and carpet installation mechanic. During my years in the installation business I made it a point to make sure every job was accomplished in an honest and skillful manner. When the time came to hang up the tools, the store I did the majority of work for put me to work on the sales floor. The store I work for is a member of one of the leading buying groups in the nation. I was very reluctant to enter sales as I had the image of the high-pressure salesman in my head and could not see myself in that position. So, when I first read your book about selling clean I saw the high-pressure way is not the only way. In your books you talk about how to advise the customer and sell at a fair price. My question is, what is a fair price? I live in a small town in the southwest corner of Colorado, and the competition can be fierce here. Our community is a mixing bowl of very affluent consumers to people near poverty level and all points in between. We are probably the highest-priced shop in town, though we stress our buying power gives us the ability to deliver great prices to our customers. The owners seem to have chosen to pocket the savings rather than share them with the customer. We are constantly challenged with competitive quotes that are far below our own. And, private labeling does not seem to fool too many people. I am paid on a sliding commission of 3% to 12% of the gross ticket based on profit margin. When I find a product that prices out comparably to a competitors’ my product is of lower quality. As you can imagine, I am embarrassed by this. Any advice? Name withheld by request Kelly responds... Thanks for the note. I’m always glad to hear from a reader that shares good ethics. As you might guess, I went through your same dilemma many years ago, which led me to write my first book about selling clean. So, I certainly understand because I also started with a big-name company that held what I thought was a high-profit margin. It took me many years to understand the larger the company, the more overhead it has. And, what may seem too high for you might be what it needs to keep the lights on and you employed. I’ve always said the people that take the risks deserve to make the most money. Your question about what is a fair price is a subjective one. A fair price is in the eye of the beholder. If you present and believe your company offers quality and great service at a fair price, your buyers can see and feel that. As to private labeling, it only works if you don’t let your samples go out of the store alone with the customer. If a customer brings a sample into my store, I can figure out what it is about half the time, and I’ll show them something better for their given situation. I preach and preach estimators need to take the samples out to the home and present them when they do the measure. Plus, the estimate needs to be done at the home while the buyer is there and ready to purchase. If you give an estimate a day or two later after the in-home measure, you just kill your chances. If your customer is shopping around after she comes to see you, it’s too late. If she is shopping around after she visits your competition, the competition has handed you a gift. Take that gift and move fast. Follow her home and take her off the market. The trick is to always interview your customer fully and know that you and your company have the best product/service to do the customer the most justice. That’s what a fair price really is. As to customers being rich or poor, it makes no difference. They all need to be treated the same, and that means you do what is in their best interest. I’ve sold rich people some pretty medium-quality stuff and poor people some very high-end stuff. Whatever they really needed or wanted. Let me know if you have more questions. Meanwhile, keep that great attitude about selling with ethics and you’ll always conduct satisfying business no matter who you sell for. |