Scenario #1
Your spouse asks you to stop by Sam’s Wholesale Club to pick up disposable cups, plates and flatware for an event you are hosting. You like to look around Sam’s while you’re there. You stop by the apparel section and notice a sign that says genuine full-length fox fur. You mosey over to check out the prices. They have one hundred and thirty-five full length fur coats packed tightly around a circular stainless steel clothing rack. You grab one of the sleeves to check out the tag. It’s two-thousand-four-hundred and ninety-five dollars. You think to yourself, that’s a crazy high price for a coat!
Scenario #2
You are in Chicago visiting some friends. You are walking downtown. You walk past Sacs 5th Avenue, a landmark jewelry store and you step into an elegant little fur store. The showroom only has five on display at any one time. These are full length minks and grey fox coats. The kind you see on people who hang out with The Donald. Each coat is strategically merchandised and individually lit with five halogen bulbs. They are like diamonds glittering on black velvet. You step near a grey fox, stroke the back of your hand down the sleeve and gently flip over the tag and look at the price. It’s $2495.00. You think to yourself, “WOW! That’s a good deal for a coat like that!”
It’s the exact same coat. At one store you choke at the price and at the other you are pleasantly surprised.
I watched a Cosby Show episode a long time ago. It was the last season of the show. The second youngest daughter Vanessa came home from college winter break her freshman year, she brought her brand new husband home with her! She didn’t bother telling her family she got married. On top of that, she married the college janitor who was twelve years her senior. After the parent’s anger subsided, Heathcliff found out the new husband was a military veteran, who had a master’s degree and owned his house free and clear. I’ll never forget how the wise Cosby dad explained the situation. He said, “Vanessa my dear, you brought me a delicious steak dinner with garlic mashed potatoes and green beans with almonds. But, you served it to me on a dirty trashcan lid.”
Many times business owners have products and services other people need, but they are serving them up on dirty trashcan lids. Poor sales, marketing and merchandising lowers the anticipated cost. When people arrive and discover your price is higher. The “poor value” light starts flashing in their head.
Fortunately, the opposite is also true.
