After one of my service advisors (who is no longer with us, by the way) matched a price on a set of tires to a competitor, I felt the need to share with you my thoughts and the comments on pricing I sent to my manager to review with the service advisors. See below...
Would anyone walk into a Starbucks and ask to lower or match their price on a cup of coffee? We all know the answer to this. Starbucks doesnt just sell coffee. They sell something special; they sell the experience, the friendly service and the connection they make with you, the customer. The truth is, you can buy coffee anywhere, but you cant get a Starbucks anyway. You need to think of your brand in the same way.
There are basically three reasons why people compare price. One: they truly are price shoppers. These people we will never please and to be honest we dont need or want them.
Two: the person does not see the value in what you are selling. Thats why you need to promote the benefits of what you are selling to the compared item or service. For example, in the case of tire price matching, tires are often considered a commodity and are easily shopped with a phone call or Internet search. So, how do you position you price and stick by it? You do that with a series of questions that brings out the benefits and reasons why you are the best choice.
Ask the customer what the warranty is, does the competitor offer lifetime rotations, flats fixed free or road side assistance. Ask the customer. Wouldnt you want to come here for all you needs, rather than to jump around? Plus you have trusted us in the past with all your automotive needs. You know I am going to do the best for you. Plus, the dealer does not have what we have.and thats the people here at Osceola Garage. Also, ask the customer if that includes mount and balance, state recycle fees, wheel alignment and all other incidentals. Get the customer to understand that your price comes with value. And lets be honest, can we really trust the competitors price the customer gave us?
And the third reason why people ask and compare price is that they dont know what else to ask. Again, this is when you need to promote value over price.
I am not a fan of discounting and lowering my prices. We have spent countless hours doing the math. We understand that our price structure is in place to remain profitable. Are we competitive? Well that depends on your perspective. If you are strictly a price shopper, the answer is no. If you are someone that wants to build a solid relationship with a company that values people and has the right ethics, the right morals and offers benefits you cant get anywhere else; then YES, we are competitive because there are no other companies like us.
Remember, price is what you pay, value is what you get.