Written by Sean McPheat |
14 June, 2016
When I was searching for a new car I did all the necessary research and visited a number of dealers for a test-drive that would convince me I had made the right decision.
I don’t have many needs in a car….it has to do the job better than I would expect and make me feel every journey is an experience (for the right reasons, of course!)
Every dealer I visited offered discounts on the cars they were trying to sell me.
With one exception.
I visited a prestige German manufacturer and was immediately hooked on a particular model.
The drive was perfect, the whistles and bells were exactly what I wanted and the delivery was on schedule.
There was just one concern – I could get other cars cheaper.
In the discussions, the salesperson said something that made me ask more questions. It was just four words, but it made me sit up and take notice.
He said “Remember, buy cheap, buy risk”.
I asked him to elaborate.
He said that yes, I could get a cheaper car, but with all the needs I had (good performance, safety for the family, low depreciation, etc) I would be taking a risk by buying cheaper models.
He said the risks I am taking include the facts that the other cars would do the job but wouldn’t give me the classic experience I’d enjoyed with the car I driven with him.
I would be buying the risk that the car wouldn’t deliver the overall benefits I wanted.
He convinced me that the price was built on the values I was seeking and that ‘the joy of the experience is remembered long after the pain of price is forgotten’.
It was an interesting experience talking with him. He realised that price wasn’t a real issue for me so he concentrated on what was most important.
By not buying the car, he convinced me I would be missing out on something that I really valued in the long term, and the cheaper cars increased the risks I would be taking that I would regret in the long-term.
So I thought long and hard, spoke to my accountant, identified that he was probably right and, six weeks later, took delivery of the most expensive car on my long list of choices.
So far, it’s proved to be a brilliant choice.
It made me think about those four words the salesperson said to me.
Buy cheap, buy risk.
It makes us realise that actually the prove of something we buy is only a small component of the buying process.
If a person has a fixed price in their mind, they risk missing out on longer-term benefits, because the item may not actually accomplish what they are buying it for, or at least not to the level they would like.
By making compromises because of price, we run the risk of the item not delivering on what we want it to do.
Oh yes, it might be adequate for the job but it doesn’t last as long or do the job as well or give us the pleasure that a more expensive or better value item would have done.
Buying cheap always increases risk. If we’re willing to accept that risk, then were are buying into the fact we may not get the results we had hoped for.
We may not realise what we could have got by investing more, but we will always miss out on what we could have experienced.
Think of this when your customers are seeking the cheapest option. Identify what risks they may be buying.
Could they be missing out on better productivity or higher profit potential?
Could the more expensive option actually be better for their business in the long run?
Might a better option for them far outweigh the risks of buying cheap?
By discussing the options prospects have, you convince them that value is much more than getting a good, cheap price.
The savings they may experience over a period of time may well outweigh the risks they run by buyer a cheaper model.
I’m glad I made the choice to buy the car I did.
Not once have I regretted paying the extra, because it’s delivering more than I would have envisaged.
And I’ve forgotten why I even considered the cheaper options!