3 ways to prevent price comparisons and increase margins and profits

If customers cannot compare prices, they will focus on something else. Maybe for your wonderful service. So prevent them from comparing and surprise them with the level of care for them. If you write about a pink elephant with blue stripes every day on this site, after a few weeks it will bother you so much that you can think of it at any moment. That such an elephant is nonsense? Yes, but what is frequently talked about is grabbing attention. When you point this out for a long time, people will get used to the fact that it is an important topic, and they will constantly engage with it in their minds. Sometimes so intensely that it pushes everything else out.

Three ways to prevent price comparisons

Lehits entrepreneurs know that when customers compare prices, it is because they have nothing else to follow when making decisions. So, give them something else to think about and talk about.

However, traders aren’t talking about pink elephants, but they do have another popular topic of conversation: price. He talks about it almost constantly (low price, lower price, amazing price, massive discount) and then wonders, “Why aren’t these customers noticing anything else?”

The price comparison eliminates the traditional dealers

If only we were talking, then we can easily get the impression that comparing prices and finding the lowest ones is really the basis of sales. So we notice who is actually spreading the information. Chains because they base their marketing on promotional prices. Internet price comparisons, as this is their livelihood. As well as various discounts. Unfortunately, the traditional dealers gave in and succumbed to this misleading impression, resulting in the highest rate of special discounts in Europe. And also the smallest market share for traditional traders compared to the rest of the European Union.

“Price comparison as the main method of competition is a thing of the past.”

While chains somehow survive a price war, Traditional merchants liquidate it. So you are wondering how to live without the lowest prices? Just note, not everyone is flocking to the price comparisons and the highlights. Alza, a large electronics retailer, recently left the Heurek price comparison and convinced other stores to do so. Manufacturers strive to ensure that the prices of their products are not comparable to the competition. Other ways to push the price into the background are being looked at. Let’s take a look at three of them.

Avoid price comparisons

Confectionery manufacturers in particular have long been striving to ensure that customers cannot place their products side by side and compare their prices. The CHOCOLAND bar weighs 35 grams, the Figaro 32 grams and 42 grams for Leon. The average customer will not discover the prices of the kilogram and prefers to focus on other criteria, such as habit, taste, and attractiveness of the package. Or a special discount.

And it’s not just about juveniles. Research has found that The buyer doesn’t talk about the actual amount of the discount too much, like the fact that he got the discount. They have already learned how to interact with the colorful “Action!” Stickers. So much so that they don’t even take price into consideration. Of course, there are people who have an overview and compare the special prices in different stores. Since they love to talk about it and bring their sales reps to their attention, it feels like almost everyone is behaving this way. The opposite is true. These are rather exceptions. So don’t try to get the biggest discount possible. Remember that most customers are attracted to the word “Action!” , And not a set price.

In-store price comparisons also support a lot of options. The more comparable items you present, the more fear a shopper will have about not making the right decision. And instead of eating yogurt, for example, he checked the composition on each cup, and he’d rather look at the prices. So it’s usually enough to have three products in a particular category: cheaper, standard, and more expensive.

Loyalty systems are another modern solution that is rapidly gaining popularity and is now available to small businesses. This is a smart move, because the customer is buying with a club card at a price roughly different from the one listed on the shelf. However, his calculation is so complex (percentages, points of purchase, or other advantages are added) that the buyer cannot determine the actual price and thus compare it with the competition.

Focus on loyal customers

It was mentioned that Acquiring a new customer is seven times more expensiveInstead of keeping the product current (as stated, for example, by the Swiss business server Business24.ch). It makes sense if you are attracting new customers to lower rates and discounts, as is usually the case today. Loyal customers are already familiar with your regular rates and usually value something else, such as the environment, the behavior of the sellers, and the choice of goods. You don’t have to tempt them with breathtaking events, but you do need to be able to keep them. ( I also write about it in the e-book Lehits in-store marketing).

Usually the shoppers are used to making a comeback You must be satisfied. They also need incentives for their instinctive decisions (which account for roughly 80% of all purchasing decisions). The opponent made such a “switch”, but there are others. For example, you can transfer benefits to the club’s loyalty card area, thereby reducing “everyone” promotions. Not only will you be saving, but a loyal customer will have a reason to be loyal to you. In addition, you give him a feeling of prestige and individuality, and he is a very powerful motivator.

Additionally, global loyalty systems have another advantage. Since card holders want to shop where they get benefits, new customers come to you without having to bribe them with promotions and lure them with ads. They can easily detect that you are in range online or in a mobile app ( See an example MyWorld Benefits Program).

I was convinced that such a benefit search really works. I bought the Tesco clubcard first just to know how it works. At first, I didn’t introduce it regularly even when shopping. But once I got the first tangible benefits (vouchers), I started using them in all cases. It’s called that ‘Social proof’ It is a powerful motive. The reaping of benefits becomes the same dependency as it was before the search for events.

This is strongly confirmed by Nielsen and Makam Market Research 2011, as 25% of customers who shop frequently have loyalty cards and 83% of them actively change their behavior by participating in customer loyalty programs.

Sell ​​more to loyal customers

If you hear “I don’t need anything” from your customers, translate it like this: “I don’t know what I need from you”. Until the iPhone appeared on the market, no one knew they wanted it. If the folks at Apple had said at the time that no one was looking for and therefore not needing it, then it likely wouldn’t have existed at all. However, many entrepreneurs believe that their customers only buy necessities, they don’t want anything else and don’t even have the money. In fact, they didn’t give them anything extra that they might want.

The art of selling more to your customers is called active selling. What most entrepreneurs manage today is more passive sales. The customer selects the goods himself or informs the sellers of his requirements. We should rather call them “feeders”, because in reality they don’t do anything else. In many stores, they also claim (including many owners) that this is very true, because they do not delay customers and do not form waiting lists. However, if these entrepreneurs consider speed of sales to be the most important, they should purchase self-service stores with a number of cash registers.

Active sales But it’s not just the sellers behind the counter. It is a complete set of procedures, from store organization and merchandise display to smart promotion. Let’s not forget about smart events for customers who have a loyalty card. It is reported that, on average, these measures can increase sales by about 30%.

It is also a good solution for scaling up (with respect to the current range). When the grocery store owner discovered that people mainly go to buy sausages from local suppliers, he expanded the counter and supply and thus increased sales. The bookseller has once again added board and computer games to children’s and young people’s books.

And let’s not forget another factor. A number of books have been written about personal recommendations (for example, “Personal Recommendations or Clients Talk to Us” by Godfrey Harris) which is undoubtedly not only the cheapest way to promote, but it is also very effective. According to Nielsen, personal recommendations from friends are 10 times more reliable than ads. A loyal customer is able to recommend the benefits of loyalty programs themselves, but if he is above the level required, his willingness to recommend is of course much higher.

Lehits Principle: Price comparison is a thing of the past

Therefore price comparison as the main method of competition is a thing of the past. It’s not about the dealers, it’s about the customers. They just want you to offer them something more interesting from the lowest price. So if you keep talking about price, They will think about the price. When you emphasize the other benefits, focus on them. The intuitive businessman resists price comparisons precisely because he delivers quality services and is above standards. A customer’s thinking is not tangible and no one can move with him anymore. It is flexible and can be changed and influenced. Whether you or your competitors will.

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