OPERANNG OPPORTUNITIES

WALLY LYNCH Paid Associates PO. Box 741623 Dallas, Tx.75243

The.following is a continuation of a discussion of price cutting practices introduced in this column last month. See page 26 in the August issue for points one through ten -ed.

CHECK THE JOB.

Find out if any of the 38 ways to chisel on a job are being used.

DISCUSS THE PRODUCT.

Make the customer understand that someone can always build an inferior product to a price. Inferior merchandise is never a bargain.

CITE EXAMPLES.

Give the buyer a healthy fear of the lower price by citing examples and case histories of sad experiences of people who bought on price alone.

REFIGURE ACTUAL COSTS.

Determine if changing source of sup- ply will lower the cost you previously figured.

FEATURE MONTHLY PAYMENTS.

Reduce the price to monthly installments and emphasize ease of payment and how small the difference is when spread over a period of use!

SELL YOUR COMPANY.

Emphasize all the good points about your company, its history, its personnel, its reputation. Build a buyer's yardstick and check off your sales points, one by one. Remember superior salesmanship can win over price.

CAN THE COMPETITION BE RIGHT?

Ascertain whether a mistake has been made in your competitor's estimates. By taking corrective action you may make a friend. BE REASONABLE.

Demonstrate the difference between price and value. Always avoid an argumentative attitude. Talk customer benefits instead.

THINK OF THE FUTURE.

Consider the ethics and future implications of cutting or not cutting your price.

OFFSET A CONCESSION.

Plan a sale at a compensatory price to offset any concession. Always remember that any concession from price, every penny of it, come right out of net profit!

Art Hood believed that the fundamental pricing problem in retailing was establishing a mark-up which would compensate for the cost of goods sold and for the services rendered in the process without handicapping sales results. You can read the very beginnings of matrix pricing into his philosophies. He, like the rest of us, thought one ought to be paid for what one did.

Free Offer

Art Hood's list of competitive services and ways competitors can chisel and skimp on them is available to those who send a stamped, self-addressed envelope to Wally Lynch, Paid Associates, P.O. Box 7 41623. Dallas. Tx.'7 5243

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