Correct Customers are a commodity. I could get a further 100 customers tomorrow but make no money on the software I sold them.
Nobody shops by price alone. Some may place a lot more emphasis on price than others but it is only one factor. Hence we have a range of products that cover high cost to low cost for any market.
For DVD Arcam is High, MustSlipUp (I think they are Korean) would be low. For Soup Heinz (UK?) is High, WalMart/Tesco Value is Low
Perceived Service, Perceived Quality, Luck/Chance, Perceived Reputation, Perceived Risk etc.
The customer makes a decision based on his perceived knowledge of a market place. I know very little about soup and therefore buy Heinz, it is within my price range and I can buy it in any supermarket. If I knew a lot about soup I may buy Tesco value soup but not Sainsburys as I may know which budget brands offer good value. Some may offer better value or even better quality than Heinz but I don't know.
If I knew I could buy Heinz cheaper elsewhere then I would and you guys, I suspect, would do the same, I mean you all work hard for your money and therefore want the most for it. Subject to similar circumstances I would not drive ten miles to save 1p on soup right?
McDonald's have made a few $$ on removing the risk from choice of eating place.
HiFi/AV is the same only the time spent making the decision process is hopefully greater than soup purchases.
Would I pay more for the same product from my dealer as I would the internet, yes I would, I keep saying so. The question is, how much more?
If I know a lot about the market place I am equipped to assess the risk of an internet purchase so thereby removing or hedging that risk, this leaves you with less benefits over over the internet, but you still have some considerable benefits.
They have come to you to give you the chance to lower your price to win the business. They didn't go to the Internet and ask them to open up stores/guarentee service levels/smile nicely at them etc.
They want you, remember this when negotiating.
They want the comfort level but feel they cannot or more likely do not want to pay your asking price(everyone likes a bargain). It is intresting that in a market/boot sale it is acceptable practice and in some countries it is expected to haggle. Buying beans from WalMart it is not expected to haggle. Buying your house or car some negotiation is allowed.
Buying a business, haggling once again is standard practice. If you don't beleive me then check out share prices.
So why the middle ground for Business to Consumer is there no haggling. Business to Business purchase decisions include haggling.
You just need to realise that it is not embarrasing or cheap talking about money. That it is not because the consumer hates you and wants to see you go bust. It is not because he does not value your service.
It is because he has limited $$$ and wants maximum products.
I read a statistic that said if Bill Gates saw a $100 on the ground on his way to work it was not worth his time to pick it up. He would make more money getting to work a second earier (I am sure he is not paid by the hour though).
So if your customer is very well paid he will not haggle as his time is more precious than the $s he will save.
If he is poor the converse applies, he can spend a long time haggling. If his time is worth less than yours it is even worse he will haggle for longer than you want and you reduce your price so much that you don't want his business. You may need it, but you won't want it.
Judge your customers, explain the benefits, offer alternatives.
I agree with the Time versus Money part from the above comment. I also agree with the facts that I am not a perfect customer.
However to combat the Internet Purchaser then you must admit that he has a valid point and understand his view point.
Then you can develop a solution to combat it. Yours being Service driven, such as presence, reliability, availability, support etc.
Offer alternatives, let him buy the same product from the Internet. Charge him for unpacking, testing, checking. We have PAT (Portable Appliance Testing), as you haven't supplied you should carry out one of these before fitting it, as a safe contractor. You guys can think of more surely.
