It only stands to reason that a company that considers itself a premium quality company would offer it’s customers a premium quality option for any work that it would do. If you agree that this is true, then you would undoubtedly be shocked to find out the staggering number of service companies that think they are a premium quality company but then fail to offer their customers the most premium option when given the opportunity to offer their services.
Most of the resistance to offering the highest premium option stems from the fact that sales people and sometimes owners of companies “mind read” customers and assume they would not make such a purchase due to the higher investment. The reality is that many consumers prefer to purchase quality options while spending more money to avoid the hassle of making a mistake by spending too little and receiving a poor quality product or service.
Premium service providers realize that to offer customers a premium option is just that, an option not an ultimatum. These companies realize that offering the most premium options to customers can go a long way to walking the walk of being a premium solution.
Offering premium options do the following…
Creates Contrast – Think about the last time you walked into a auto showroom and were “sticker shocked” by the price of the most premium car on the floor. When you saw the next car being $20,000 less you were probably relieved and when you saw the vehicle you wanted even less you were probably thrilled. This phenomenon is called creating contrast. To create this contrast you must start with a higher price for the most service possible. Then lesser options must be present soon after the highest option.
Creates Choices, Not Ultimatums – When pricing your services or installations, be prepared to have at least six ways of asking for the same repair with different degrees of bundling, warranties and quantities to give customers the option of starting with the most premium option possible. Check in with the customer after each option is given to see what they think. If they don’t like the option, don’t get emotional. Just move on to the next one with a lesser bundle, warranty or quantity.
Creates Higher Value – Many times, it will cost less money to do all the repairs in one trip. The customer can reap the rewards of this increased efficiency by getting a price that is less than if they bought everything on separate trips.
Increase Profit – The operating efficiency derived from doing as much as possible on one call is astounding. The gross profit for this type of premium option can often double what the single repair by itself can bring.
How to build premium options for customers? Be creative. Let’s say that you normally sell a media air filter. Bundle in 10 years of replacement pads and 10 years of planned service with a lifetime warranty on the air cleaner parts for a Platinum package. I have seen this package priced and sold for up to 7 times the price of the air cleaner by itself.
The only thing that limits you is your imagination. Remember, even though you are often times shocked by the sticker price of the premium auto you first see in the showroom, someone will eventually walk in and not be shocked at all. In fact, they will probably just write a check for that most expensive, premium option. Don’t take away premium options from your customer. Let them drive the best, premium option out of your showroom.