Pricing Strategy: Don’t Lower Prices – Create Value Packages.

While not an advocate for lowering prices, sometimes it is necessary. One strategy smart companies are doing to lower prices is to create value added packages. They may lose revenue on a product while at the same time picking up revenue in another. For example, in the restaurant business TGI Fridays has created several value meals priced at $10.00. Applebee’s has done the same thing with two appetizers and two entrée’s for $20.00. These are price promotions that get guests into their restaurants. Once there, the guests still buy drinks and order other items on the menu. A good server can help create an even better dining experience by suggestive selling, also known as up-selling (which can work in virtually any business for any product).

In the end, you still have to create a great customer service experience. The value meal may get them in the door. The experience brings them back!

Book Recommendations: I love great books. My buddy Ron Karr just wrote a fantastic sales book titled “Lead, Sell or Get Out of the Way.” Competition is intense, and if you don’t take a leadership role in producing results for your clients and customers, someone else well. This book examines the seven leadership traits that top producing sales people count on for their success. Ron outlines a process based on the idea that great sellers lead relationships in the same way that great leaders sell ideas. Go to www.LeadSellOrGetOutOfTheWay.com.


Cult Update: Last week my new book, The Cult of the Customer, became the #1 business book on Amazon.com. Thanks for those who have joined the Cult (bought the book). You are on your way to starting your own Amazement Revolution. If you haven’t already joined, go to www.CultOfTheCustomer.com and order your copy today.


Shep Hyken, CSP, CPAE is a professional speaker and author who works with companies who want to develop loyal relationships with their customers and employees. For more information on Shep's speaking programs, books, tapes and learning programs please contact (314) 692-2200. Email: shep@hyken.com – Web: www.hyken.com – Click here for information on The Customer Focus™ customer service training programs (www.TheCustomerFocus.com).