Sir Henry Royce, co-founder of the Rolls-Royce, was years ahead of his time with his quote:
“The quality is remembered long after the price is forgotten.”
Royce had a reputation for perfection and quality from his strong attention to detail. As the popularity of Rolls-Royce and Bentley cars escalated for the rich and famous, none of them questioned the price they paid. They were buying a package much larger than a good-looking car. They received exceptional service from the salesperson, a car that oozed quality, reputation and reassurance. They knew what they were getting when they bought the car. They didn’t have to take a gamble on the unknown brand of car. Do you think the buyers of those early Rolls-Royce motor vehicles quivered on price when they were ready to buy one of those cars?
Sure your clients may not be as cashed-up as those well-to-do car buyers but there are some lessons to be learned from Sir Royce in terms of quality offered. If you concentrate on quality, you don’t have to compete on price.
If you help your prospect see the problem they face and have the confidence in providing them with the perfect solution, then you can focus on the delivery of that solution.
Businesses and consumers often switch suppliers and agencies because they were dissatisfied with what they were getting previously. It wasn’t because they were unhappy with the price. No, they were unhappy with the service or solution they were provided. They switched so there wouldn’t be a repeat.
If you can hone in on the solution your prospect wasn’t providing last time and can show how that won’t be the case with you this time, the prospect is unlikely to compare what they paid to your competitor. They want reassurance of a successful outcome and they are willing to pay a little extra for it.
Price…a dirty word in business
No one likes to talk about the price, but you need to have the conversation before the work begins. You need to be clear, accurate and not mislead a prospect on the price they will be charged. But don’t make price front and centre.
You don’t need to hide the fact that you aren’t cheap, quite the opposite. Most people appreciate that quality costs a little more. You want your clients/consumers to know and appreciate this. They may have tried a cheaper competitor in the past or may do in the future but if the competitor can’t deliver the outcome that you provide, they will be back. Once they return they will be even more convinced that quality and service far outrank price.
Compete on Value of Service
If you can understand the value of an assured outcome and can demonstrate it, you’re on the way to competing on value. There will be times when you get the opportunity to acquire a new client because one of your competitors has failed to deliver. You can demonstrate the outcome by telling the same message in all of your marketing and pitch materials, including testimonials, showing them the level of service from the initial enquiry.
Tap into the failure of your competitor and give your prospect the confidence in achieving a successful outcome. Remember, they pay you to deliver the outcome you are briefed on.
Be Consistent
Clients like certainty and certainty comes with being consistent. Be consistent with everything you do. If you’re continually tinkering with your pricing structure or your processes, your clients will start to wonder what will have changed the next time they contact you.
If you need to change your pricing structure, explain why you’ve changed it and reassure them that you won’t change it again in the near future. Change can be unsettling for a client if they aren’t sure what’s next in the chain of events. Tell them why the new process works better for both of you, keep them informed and if you make changes, be consistent in the way you communicate them.
Rolls-Royce Achieved It
In the words of Sir Henry Royce once again “Strive for perfection in everything you do. Take the best that exists and make it better. If it doesn’t exist, create it. Accept nothing as nearly right or good enough.”
Keep this in mind and your clients will love you for it. They’ll appreciate the exceptional service you provide them and will happily pay your invoice knowing that you went above and beyond to provide an outcome they were hoping for.
Contributed by: eBoss
