We all have some services to sell. And we all have accepted that every one of us is a born salesman. The only difference is that some people accomplish far more sales than others; they become millionaires. It has also been agreed that the total money being circulated in any market is more or less the same; when some people become rich naturally the others end up becoming poor.
Just because the economy is crashing or people have reduced their purchases doesn't mean that we need to stop selling. If we stop selling, our family stops getting its daily bread. The best strategy to adopt is "selling more during tough times makes you rich faster."
I got this idea of "simple and stupid" when I chanced upon a college’s placement website. Let me tell you, the website was the most basic version. It was sold to the college by a team for the cost of a premium package version. When I asked the co-founder of the college, how come they bought this basic version at a higher price when a lot many features were missing, the response I got was "The web company never mentioned any features or addon packages in their brochures. All it said was they had websites to sell. Because we wanted one badly, we took it".
Had it been me selling the website, I would have taken the pain to educate the customer about the pros and cons of the different versions and simply ended up losing them. The golden rule is “If the customer is not willing to learn about the product, you do not elaborate on any advanced feature. It’s a safe bet that the customer will buy anyhow".
Now that most companies are cutting down costs, this definitely improves the efficiency of the firm. But it also ensures the end product has only a marginal profit. Thus we have stricter competition and it’s almost certain that we will be thrown out of business if we don't make sales. One way to face the cost-cutting paradigm is to ensure that the end price of the product is a summation of the components. Here again it's the “simple and stupid” phenomena that’s working.
I got this idea when I visited an upholstery shop to get the cars seats done. They said “the total cost for the leather seat cover would amount up to 20,000. We can help you decide by providing a split up.”
1. Cost of material 15,000
2. Labour 2000
3. Adhesives, foam and fitting 3000
I made a deal with them saying I would get them the material, they can do the stitching and fitting. They agreed to it without any problems. Now the catch was that when I enquired about the price of leather, I realised it would cost me 16500 for the material alone. Since they had tie up with the agencies, they would get it at a lower price. And so I went back to them and accepted their price. For them they got their sales closed by showing the customer a split up of their service.
To make the most out of any tough situation, it is simple strategies like these that we need to concentrate on and get working…