Whether you believe it or not, the price of your service or product is one of the last things a customer considers.
Any price is fair, so long as value is there.
When the guy jumps into the convertible for a test drive, at what point does he start to get hung up on price? (Usually after he’s decided he has to have it.) Or better yet, ever noticed someone in Home Depot refuse to touch the latest drill until he knows the exact price? Nope… never.
Price comes into the equation at the end of the process, after inspection and desire have played their part, when it comes time to fine tune and make an assessment on the value of the item versus its price tag. Everyone wants the best, it’s just a matter of justifying how valuable it is to them versus what they can actually afford.
In the charter business, our client base cares more about the value than the cost.
If it were a matter of cash, all our clients would fly commercial, opting to take the bus over the limo. But they want the value of the experience - takeoff happening when they want it, no lines, no waiting hours for security, no obnoxious kid elbowing their way into your already cramped space. They want to be escorted quickly on to the plane (their Air Force One) and when they get on your aircraft they get flown efficiently to the destination, like the master of the universe that most of them are.
So what are you doing to show them value? Why is your offering any better than what the competition is offering? If your mantra is: “Choose us, we’re slightly cheaper!” then you can call the bank now to repossess the aircraft. (Thank you Harold of Magic Express for this great line.)
Harold and Magic Express get it. Why? Look carefully at their site (www.magicexpressair.com - like NetJets, all they sell are aircraft of different sizes (that you can rent) and solutions. They sell solutions. Think about that.
Let’s look at another angle - the beer angle: A 30 pack of Budweiser is substantially cheaper than a six pack of Reissdorf Kolsch from Koln, Germany. Both are beer, both quench your thirst, and given time both will leave you in a drunken stupor. But in experience, there is no comparison. The Bud smells like it tastes- rotten wheat in tap water. It is artificial carbonation, has no character, and is simply a cheap means to an end. But the Kolsch, aaah! Pour it slowly, watch the belgian lace float up the glass yielding a creamy, thick head. The rich, wheaty scent like fresh baked bread and the crisp, full flavor- forgive my German upbringing, but this liquid gold is divinity, the essence of beer. And therein lies the difference in value. I may mentally be on a Budweiser budget, but I’ll spring for the Kolsch experience, anytime I have an opportunity indulge.
Hold your firm and your aircraft to the same standard. Do you want to say, “hey, we’re Bud. We taste ok, but man… are we cheap!!” or do you want your customers shaking in anticipation to be treated like the masters of the universe they know they are? Offer them up a good and original reason to come back for more and blind them with your radiance. Being the cheapest trains them to think that way, offering the best value for your their dollar, requires them to come back for more.
–Dan Graham
p.s. Promote your value by clicking here and learn about my day job, RSVPair and the madmen that spawned the idea and hired me to write
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