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has ordered more than a million pairs and expects to sell $200 million worth. That s comparable to what Nike did with the bestselling Air Jordans. 2. Shift the argument. Another good value strategy in a pricing battle is to introduce the concept of total cost as opposed to initial cost. In some categories, the costs you incur after you buy a product can be substantial. If your product performs better after the purchase, you might be able to build a cost-of-ownership rather than a cost-of-purchase argument. A variation on this is the concept of longevity. An expensive product, such as a Mercedes, can have a high price, but it will last far longer than your average car. That s a nice rationale to get customers over what could be a bad case of sticker shock. A similar strategy can be used to sell expensive beds such as Duxiana, which go for $3,000 or more. The concept: you spend a lot more time in your bed than in your expensive car. In fact, you spend about 40 percent of your life in bed. So why scrimp 3. Add more. There are times when value is a sum total game. If you can add items to your offer, people will begin to feel that they are getting more for their money. Some years ago, we were asked about
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Continental Airlines. It had come out of bankruptcy, had installed new management, and was repositioning itself as a new airline. It had the newest fleet. It had an improved business class and improved club services. It served food (and has continued to do so in recent times, even after other airlines have stopped). It has added more destinations. The obvious strategy was to tell a value story, which we verbalized as more airline for the money. It used this concept until (you guessed it) a new advertising agency arrived with its idea: Work hard. Fly right. The value strategy was replaced by a meaningless slogan. 4. Be nice and helpful. When you are in a retail, consumer-centric business, service can be a powerful value story. Tucked away in Greenwich, Connecticut, is Sam Bridge Nursery. A full-service, year-round garden center, it s been in business since 1930. It certainly isn t the cheapest place to buy plants and horticultural materials, but it sure is the friendliest. Any elderly lady rolling a wagon full of plants is quickly aided by staff members. Any questions about anything are quickly answered. One shopper asked another why she comes to Bridge. The answer was, No one else is as nice.
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Yes, it takes a lot of effort and cost and training to make your staff nice and helpful, but you ll get it back by being able to charge a little more even in a time of crisis. A paragraph from the Sam Bridge Web site gives you a sense of how hard the company works at giving better service and value:
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Here at Sam Bridge Nursery and Greenhouses we pride ourselves on our superior customer service and knowledgeable staff. We have been providing expert advice to our customers since 1930. Throughout the year our staff attends many industry conferences, trade shows, and open houses to ensure the most current and accurate information is passed onto you. If you have any questions please feel free to call us or stop by and we will be happy to answer it for you.*
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There are those who would say that it s easy to be nice when you re a small operation like Sam Bridge Nursery. That s a fair observation, so let s talk about big. Best Buy, the big-box electronics store, is the last man standing. Its two big competitors, Circuit City
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