Greetings Floor Dealers!

“I have to keep my margins down because of my competitors,” said a dealer attending one of my webinars. On a private coaching call another dealer told me, “I live in an area where people expect a big discount.” These are sentiments I’ve heard expressed dozens of ways by dealers from every conceivable market: big cities, small towns, urban, suburban, farm communities, high-tech communities, out in the boondocks, and everywhere in between. The common theme is this: “Yeah, maybe dealers in other areas can charge high prices, but the situation in my area is different.”

Hogwash.

However, I could be wrong. You might really, actually, truly live in an area where it’s impossible to command anything higher than slave wages; where market conditions beyond your control have condemned you to live out your career broke, struggling, and frustrated. If that describes you, I have a question: Are there roads leading out of your town? If so, then leave. I bet there are even street signs pointing the way. If you actually live in an honest-to-gosh “cheap price vortex,” it will be worth whatever expense, hassle, and sacrifice you have to make in order to escape to an area where you won’t have to spend the rest of your life running on your hamster wheel of doom.

But a word of warning: be careful that the same thing doesn’t happen no matter where you move. Because your low-price problems most likely have nothing to do with your market, and everything to do with you.

That statement may make you angry. But that’s okay, because it’s actually good news, if you’ll hear it. It means that you have the power over your fate, not external circumstances. It means that if you make the decision to learn new strategies, then you can create tremendous profits in any conceivable market, just like these dealers:

  • Dan Ginnaty, 45% margins. Great Falls, MT (pop. 58,000)
  • Craig Bendele, 45-50% margins. Fort Meyers, FL (pop. 68,000)
  • Mark Bouquet, 40% margins or higher. Greater Chicago area, IL (pop. 9.52 Million)
  • Bill Vannoy Jr., 45% margins. Greater Sacramento area, CA (pop. 2.5 Million)

Premium Price Strategies

Always remember that it’s systems of sales and marketing strategies all working together to create a zero-resistance selling environment that will enable you to command premium prices, not a single strategy.

Eliminate all cheap-price language. If you have store signage, ads, brochures, or web pages saying things like, “Our prices won’t be beat,” or “Free installations,” then commanding premium prices will be difficult. A cheap-price message and a premium quality message are contradictory. Pick one and stick with it.

Use testimonials everywhere. What others say about you is 100-times more powerful than what you say about yourself, even if you’re 100-times more eloquent. Suggestions for where to use testimonials:

  • your website
  • a testimonial “brag wall” in your showroom
  • a testimonial booklet for walk-ins
  • testimonials featured in your display ads
  • audio CD or DVD of testimonials for prospects

Create differentiation when prospects walk in. Hand them a beverage menu and say, “What can I get you to drink?” Bake cookies or bread in your store; the aroma will put prospects at ease. Offer the goodies to walk-ins. Instead of saying, “How may I help you?” say, “Welcome to Jimbo’s Floors! Are you a new or returning customer? A new customer, great! We have a special program for new customers, can I take a quick minute and tell you about it?” Then lead her into your sales process. Do the same if she is a returning customer.

Use FB to position yourself as a premium-quality dealer. Post photos of happy customers on their new floors and say, “Like this post to congratulate John and Suzie Pendergastman on their new floors.” Tag them on the photo and your post will appear on their timeline where all their friends will see it.

In part two I’ll cover more strategies for commanding premium prices.

 

To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”

Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!