Three "Virtual Products" You Should be Selling
April 2004

We'll admit it. A larger percentage of graphic arts services is being bought on price than ever before. However, let's look at what buying on price means. For our purposes, consider the following:

"Buying on price is defined as accepting the lowest bid regardless of qualifications. For example, a pure price purchaser will give a P.O. to a company that blew a job for them last week."

Based on this definition, wouldn't you agree that not that many print jobs are truly bought on price? Here's the problem. The belief that your customers will only buy on price is a self-fulfilling prophecy. If you structure your business around this assumption, you will find it to be true. While pricing pressure is certainly real, it's usually the result of poor differentiation on the part of the seller (i.e., services provider). Straight talking, ultra-reliable graphic arts services providers still command a premium for what they do.

One of the best ways to move the battlefield away from price is by positioning your company as a safe haven in the dangerous wild. Never underestimate the power of fear to significantly influence buying behavior. Fear of making a bad buying decision is a huge motivator, especially when print jobs - and the jobs of those making buying decisions - are on the line. When you consistently make the people you do business with look good, this fear goes away. The result? The frequency of pricing objections will gradually diminish and you will consistently sell more ... at better prices.

You'll only get profitable selling opportunities if you can sell more than just the basics. Here are three "virtual products" for which your customers and prospects will gladly pay a premium:

Convenience: When a prospect considers doing business with you, one of the first things they think about is, "Will this decision complicate make my already hectic business life?" The simple things are very important. Make all customer "touch points" easy and convenient. Examine how you and your company give estimates, OK proofs, do press checks, answer phones, return messages, give job status updates, resolve billing issues and more. Does your web site provide useful information? Do you offer design advice? Have you structured your business around your customer's needs or yours?

Be the safe choice: This is important enough to state again. Never forget that you're in the business of making promises and keeping them. It's really this simple. Like you, your prospects are afraid of blown deadlines, dealing with new vendors and dreaming up ways to consistently please their customers. In today's job market, they're perpetually afraid of making wrong outsourcing decisions. Discover your prospect's source of fear and position yourself and your company as the safe alternative.

Peace of mind: When you sell convenience and safety, it's up to you to deliver! Kept promises are the peace of mind your prospects simply can't put a price on. In this industry, the key to success is the ability to forge and maintain long-lasting business relationships. Companies that continually prove their value will develop a roster of happy clients that see no reason to do business with anyone else, even for a nickel off.

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The Final Word … When pricing pressure is at its strongest, the ability to effectively handle price objections will help you win more business and maintain profits. The best way to handle price objections is to take the focus away from price, and place it on the things you sell that don't have anything to do with the price on the bid.

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