Read an article several weeks ago regarding the idea of offering customers a “no haggle” price policy. We’ve seen it all before, and for me, I saw it all too often in the auto industry. Now, while I think that this works ideally well in certain industries, lets take a closer look at why this isn’t always necessarily the way to go.
Example #1: Car Dealers
You have the large, multi-franchise dealers where gross profit can be distributed amongst thousands of vehicles regardless of pre-lot servicing, parts, etc. The franchise can set a universal price point on each vehicle, counting on amount of vehicles sold. You have the mom and pop dealership that doesn’t have that liberty but are within ballpark range and can offer the same great vehicle.
There is no doubt a level of anxiety that awaits every time someone is ready to car shop. One thing that certainly helps most, is already knowing who you will be dealing with…your “middle man”.
Example #2: Insurance
Insurance is very similar to the automotive world. You have your direct writers and your independent insurance agencies. While the direct writers will proclaim their fame solely on price, often times, the client realizes the benefits from the independent insurance agency when an issue or claim arises. Similarly, there is a level of recognition and rapport at the smaller dealership than at the franchise.
In a world or industry where there is always going to be a lowest price, reputable and honorable businesses that want to compete will ultimately have to offer some form of value added proposition into their services or product. People don’t necessarily purchase LOWEST PRICE. People purchase HONEST PRICE…and yes, an honest price is not always the lowest price available.
So when you decide to start understanding your brand and identity, take the time to really understand how you are going to incorporate this philosophy into your brand and your identity. In a world where a dollar barely goes a foot, conveying to your customer that you are here for them, especially during a time of need, or the fact that you have spent extra time to make sure they are in the best hands, will go much further….especially if they need you during the time of an incident in the future.
HONEST PRICE….Not always LOWEST PRICE.