Showing posts with label pricing. Show all posts
Showing posts with label pricing. Show all posts

Thursday, February 03, 2011

How much do you charge?

Do you get that question often? It can seen like a silly question. Imagine walking into a restaurant and asking the doorman, “How much do you charge?”

The most likely response is,
“Do you want hamburger or steak?”

Would a person walk into a store and start the conversation with:

How much to buy a computer?
What does a TV cost?
How much for a vacation?

When a person is going in for open heart surgery they don’t ask, “How much is this going to cost?”

So, why would that question be part of an opening conversation?

Perhaps they don’t really want what you sell.

Perhaps they see your product as a commodity.

Perhaps they are simply collecting prices.

How can you respond?

You could ask, “What’s more important, fixing the problem or staying in budget?”

The answer is, “Both”.

You follow up with, “Okay, then tell me about both of them.”





Share/Save/Bookmark

Tuesday, November 23, 2010

Fortinos Customer Service Report

Who would have thought that buying three bags of President's Choice potato chips at Fortinos could be so annoying?



Who would have thought that the Customer Service counter at Fortinos would be so unfriendly to overcharged customers?

The many signs on the shelf said, “3 for $4.98”

Looked like a good deal. The President’s Choice potato chips at Fortinos are regularly $1.99 each so I could save $1.00 if I bought three bags. I had intended to buy one or two bags but the sale enticed me to buy three.

I picked up three bags, checked out and went home. Then I looked at my receipt and noticed that I had been charged the full price of $1.99. I was over charged by one dollar.

The next time I returned to Fortinos I took my receipt to the customer service counter.

I put the receipt on the counter and pointed out that I was over charged. I then watched what happened next.

On the receipt each bag of chips was listed and calculated at the price of $1.99 even though the second line of each listing described it as “3 for $4.98”. The math didn’t match. I was charged $6 instead of $5.

The first customer service woman looked at my receipt for awhile, looked around and seemed confused. She then asked the second woman behind the counter about the pricing on potato chips.

The second woman approached and proceeded to explain to me about their computer system and the dictates of head office. I didn’t care about either. I only wanted my refund for the over charge. She also spoke annoyingly loud.

The first woman said she would refund me and printed a receipt that she asked me to sign. I asked her, “How much are you refunding me?” It was $1.02 – the difference in the overcharge. At this point I recalled that Fortinos has a policy of giving the item free to the customer if the item scans at the wrong price.

I pointed this out and suggested that because it was a three-for special, I had purchased three to meet their conditions and all three had priced wrong – therefore I should receive all three potato chips bags for free. They should refund me approximately $6.00 that I had paid.

At this point both of the customer service woman started talking at me – explaining how I was wrong, how their computer system works and blah, blah, blah. The second woman was annoyingly loud again. This time I asked her to stop yelling at me. Her loud response, “I’m not yelling.” I calmly repeated, “Stop yelling at me.” She went on to say that she just talks loud. She did not apologize but she did lower her voice a bit.

So far neither of the Fortinos customer service representatives had apologized to me. They seemed to be in a defensive mode.

Finally the first woman offered to call the in-store manager. I patiently waited. The second woman made a call on her cell phone then stated, “The manager will be here in a sec.” “A sec?” I repeated with a raised eyebrow. Clearly this person did not understand the meaning of a sec.

Several minutes later a third unsmiling woman walked up to me. She looked at me and said, “How are you today?”

What an annoying and stupid thing to say. I was clearly not interested in small talk.

Her next question was equally annoying and stupid, “Is there a problem here?”

I asked her who she was. Then she identified herself as the assistant store manager. (No name and her name badge was covered)

Customer Service Tip for store managers everywhere
Approach your unhappy customers with a smile and say, “Welcome to Fortinos, I’m Mary, the manager on duty. How can I help you?”

After I explained what I wanted she started with, “I’ll tell you what I can do for you…”

Another yucky line.

At some point in our discussion, she finally said, the words, “I apologize…” I immediately said, “Thank you and by the way that’s the first apology I’ve heard since I’ve been here.”

The manager responded with, “You’re wrong, I apologized earlier.”

Me, “I said that was the first apology that I heard.”

Fortinos store manager, “Then you weren’t listening.”

I don’t know if she had apologized earlier. Maybe I missed it. Perhaps I was too annoyed by the stupid things she said to hear her apology. Maybe it sounded lame and insincere. Perhaps after 10 or 15 minutes I was simply aggravated at how difficult it seemed to be to buy a few bags of potato chips at the advertised price.

And who should be the better listener – the customer or the customer service staff and store manager.

The Fortinos staff seemed more interested in vindicating themselves then listening to my concerns.

None of the Fortinos people said, “Thank you for bringing this problem to our attention.”
This in spite of the manager saying that she didn’t like this new pricing method.


The Result
I had paid $6 for a $5 special. According to my understanding of Fortinos policy I should have been my full $6. Instead I received a partial refund of about $3. Not a big deal but not consistent with their policy.

Warning
If you are buying specials from Fortinos there are two significant changes you should be aware of.

If the special is 3 for $3 you will no longer get the prorated price on one or two. You must buy 3 to get the special price.
If you are buying Presidents Choice potato chips you must buy three of the same flavour to get the special price even though the special is on several flavours.


I wonder how many people have innocently bought and overpaid for the President’s Choice potato chips at Fortinos believing that they would get the special price.

Whatever you do – don’t ask the customer service representative at Fortinos to stop yelling at you.


Fortinos Customer Service Report

George Torok






Share/Save/Bookmark

Sunday, April 11, 2010

3 Marketing Mistakes That Sink Business in a Recession

A recession does not mean the end of your business unless you navigate those rough waters blindly. Here are three rocks that can sink your business ship unless you avoid them while navigating the dangerous waters of a tough market. You might get wet but no need to capsize.


Cut expenses across the board

Cut marketing. Cut staff. Cut all expenditures! This siren call is the most common and foolish mistake. It’s common because it is a knee jerk reaction that requires no thinking. It’s foolish for the same reasons. Making across the board cuts is a political response. It’s not a smart business strategy. If cutting across the board in tough times was smart then raising all expenses in good times would also be smart.

Instead, review all expenditures and categorize each line item into A, B and C categories in terms of ROI. “A” items are those expenditures where you can measure a strong return. Continue spending and maybe even increase these investments. “B” items are those that you believe are good but you haven’t yet developed an accurate measurement. Continue these activities, improve the tactics and improve the measurement. “C” items are losers. Stop these completely.


Cut your prices

You will be asked to cut your price. Don’t act like that is a surprise. And don’t pretend that this is the first time. So prepare for an onslaught of such requests. Prepare to deal with the price issue strategically not as a prisoner. Don’t cut price – without an equivalent exchange in value or a reduction in your costs. For example you might allow a discount for early payment or a larger order.

Another way to deal with price resistance is to introduce a lower value product. At the same time introduce a higher value product so the original product which is now in the middle looks more attractive. This is a variation of the good-better-best positioning. If you can’t afford a Lexus you can always buy a Toyota.


Hide

Imagine how it looks when you stop attending trade shows, discontinue your advertising, shelve your newsletter, stop meeting with clients and avoid networking events. Imagine what your clients will think, what your competitors can say and what prospects might believe. None of it will be positive for you or your business.

When times are bad, people need to hear from you more often. Especially make a point of connecting with your best clients and advocates more often. Make your connections more personable so they can feel your confidence.

For the rest of your clients and contacts find efficient ways to stay connected. Maybe it’s a good time to launch your newsletter – or publish it more often. Explore the tools on the Internet that allow you to stay in touch with people easier and more cost effectively. It might be a good time to launch your blog, build your FaceBook page or post videos on YouTube.

A recession can be tough. No need to panic. It’s time to think and act smart with your marketing. Keep your business off the rocks while aiming for the deeper waters beyond. Don’t stop paddling until you are clear of the rocks.



© George Torok is the co-author of the bestselling Secrets of Power Marketing. It’s published in at least seven countries. He helps small and medium businesses gain an unfair advantage over the competition. Get your free copy of “50 Power Marketing Ideas” at http://www.PowerMarketing.ca Arrange for Torok to speak at your conference by visiting http:///www.Torok.com For media interviews call 905-335-1997

More Marketing Articles


Share/Save/Bookmark

Monday, February 11, 2008

Marketing Your Service Value

Marketing your Service Value

Marketing should demonstrate value especially when you offer a service. Don't make the mistake of thinking that value is based on cost. If that was the case we would pay pennies for a cup of coffee.

Business is about exchanging value. That value is measured by the return on that investment. In other words value is best illustrated by what is in it for the buyer. Sustainable business is based on the ongoing exchange of value.

Bad business is about taking. Actually – that could be labeled as theft. Yet, have you noticed that some people want to take from you. They don’t want to pay for the value. If often happens in the service business. When you offer a service to unappreciative prospects they might object with, “Why is your price so high? It doesn’t cost you that much.” Try that approach the next time you order a latte from Starbucks.

However this objection is common when selling a service. Why? Because your prospect does not understand and appreciate the value of what you offer.

If your clients are asking you to reduce your service fees – they don’t appreciate the value of your service. If someone tries to steal from you – you can’t blame them - they might only be testing. If you let someone steal from you – you are the fool.

When someone tries to steal from you – tell them your price and stick to it. If they are serious, they will buy, if not they will move on and stop wasting your time.

George Torok

Personal Marketing

Marketing Speaker