GOOD BETTER BEST
Transcript: WHAT DOES IT MEAN? ECONOMY STANDARD PREMIUM BRONZE SILVER GOLD CONSUMER PROFESSIONAL EXPERT Buyers appreciate choice. Given a choice of three price points, approximately two-thirds of those who make a purchase will choose the middle one. CHOICE OVERLOAD Visual Discrimination. Magazine and newspaper editors use this approach of good, better, best to feature three products in different price ranges. They don't do this to "upsell" someone. They do it because it's a credible and fast way to explain the differences between several products at different price points. THE Build confidence with your customers. Turn ordinary signage projects into extraordinary to drive profit in your business! Turn ordinary to extraordinary and learn how you can add pizzazz to your signage projects quickly and easily to exponentially increase profits. YOU'VE SEEN THIS BEFORE CREATIVE. We’re not talking about price; we’re talking about creative design and providing your customers choices. Why offer good, better and best options? A benefit of good-better-best is customers are more comfortable with this pricing strategy. Few of us take well to ultimatums, which is exactly what offering a single price is. "Here's the price, take it or leave it." In contrast, good-better-best is accommodating: "If the price is too high, consider our good version" or "You may appreciate the features of our best option." The customer already has choices. How can you create differentiation with today’s designs and materials? How can Rowmark materials help you differentiate? ADA Alternative Rowmark Sign Supplies HOW TO MARKET GOOD BETTER BEST? DIFFERENTIATE TO INCREASE PROF TS HOW TO MAXIMIZE YOUR PROFITS? SAMPLE PRICING GUIDE AGAIN! THANK YOU! $125 1 The strategy is RIGHT, but the execution is WRONG! CHOICE Our brains are hardwired to only notice what is different. COMPARISON • Frame solutions • Decorative stand-offs • Unique mounting options White: Ash 1/32": Dark Brown 1/32": Backer 1/32": Kona/Ash 1/16": Smooth Silver 1/16": Hidden Streamline Frame: model works well to help people quickly understand and categorize their options. It's what we all do when researching products or services to buy. Display side-by-side for easy comparison ON THE OTHER HAND $3.81 $9.93 $0.87 $3.49 $11.89 Appliqué & Substrate CHOICE CHOICE $11.81 $0.94 $0.94 $3.77 $0.29 $2.02 $22.38 • Customers cannot articulate their needs • They do not want unlimited options, but they do want to take an active part in the design process • They rely on you to provide expert advice and guidance CHOICE $25 $75 CHOICE DIFFERENTIATE CHOICE $25 CHOICE BUYERS DO NOT RESPOND WELL TO Designed to comply with the Americans with Disabilities Act (ADA) Federal regulations. Braille-engravable, routable sheets come in a wide variety of color combinations. 38.28% STRATEGY ColorHues™ 30.37% CHOICE CHOICE GIVES BUYERS A BASIS FOR... CHOICE $29.99 $20.00 $49.99 $85.00 $35.01 41.19% CHOICE ColorHues™ - a single-ply decorative sheet material with brilliant shades of translucent and opaque colors. CHOICE Red/White Satins: Portico Frame: CHOICE 2 CHOICE CHOICE CHOICE 2 41.19% Material cost: Overhead/labor: Total: Suggested Retail: Gross Margin $: Gross Margin Percentage: Material cost: Overhead/labor: Total: Suggested Retail: Gross Margin $: Gross Margin Percentage: Your job is to differentiate yourself so that the prospect chooses to do business with you. Increased profits are the benefit you receive. good-better-best DOES YOUR SHOP LOOK LIKE THIS? HOW CAN YOU DIFFERENTIATE? WHAT WILL YOU LEARN? $14.37 $10.00 $24.37 $35.00 $10.63 30.37% CHOICE 1 CHOICE YOU? Material cost: Overhead/labor: Total: Suggested Retail: Gross Margin $: Gross Margin Percentage: The cost data and prices listed are estimates and should be used for reference only. Rowmark makes no claims that these are typical/average costs or market prices. Your specific business model, purchasing practices, overhead rates, cost structure and desired profit margins must be taken into consideration. Given a choice of three price points, approximately two-thirds of those who make a purchase will choose the middle one. Because of this tendency, there is a school of thought that calls for all sellers to offer three solutions - a low-price version, a "right" priced version and a premium-priced version. 1. Establish three versions of your product, geared to three types of customers or three common sets of customer needs. CHOICE CHOICE $42.15 $35.00 $77.15 $125.00 $47.85 38.28% How can I move my CUSTOMERS from... IS THIS HOW YOUR CUSTOMERS 3 $3.43 $10.94 CHOICE Given a choice of three price points, approximately two-thirds of those who make a purchase will choose the middle one. MARKETING STATISTIC: CHOICE 3 Toffee/Ash: Clear 1/4": Ash: Clear 1/32": Rapid Stand-offs: GROSS MARGIN PERCENTAGE COMPARISON: ? CHOICE 2. Find a way (often a table) to show at a glance which product or services fall into each tier. This enables customer to compare, as well as to understand