Sunday, December 23, 2007

Find a want or need

Find a want or need
When I was a 15-year-old schoolboy, I had a Saturday job working for a local businessman, David wood who owned a milk round and small chain of green grocer shops.
One Saturday morning David gave me a box of oranges and asked me to go outside the shop and build tow pyramids of oranges, one each side of the window. After completing the task, I was then asked to display price stickers by each stack of oranges. One price tag said 8 pence each, the other 12 pence each. I immediately said this couldn’t be right- as all the oranges were from the same box, they couldn’t be different prices! In reply I was told: ‘There is always more than one market for the same product.’
It was then that I first realized that customers don’t necessarily choose the cheapest options (more of this in step 6), and that a little daring can often pay big dividends. Here was a single product displayed in two stacks within a few feet of each other for different prices, and some people actually purchased the more expensive of the two! Why? The answer is, people see what they want to see. Some customers saw the 8 pence oranges as a better buy, because you got three oranges for the price of two of the more expensive ones. Other customers perceived the 12- pence oranges as the best buy because they must have been fresher and sweeter and they would probably last longer.

The moral of this little story is, you must learn to flow with the tide and gibe the customers what he wants. Ask your customer what he finds the most attractive, the most important, the most appealing, the most beneficial, and so on, and when he tells you, give it to him with both barrels.

Although, on the face of it, selling a product to different customers for different prices isn’t fair, this practice has been in existence since the year dot. One of the first rules of commerce is, wherever possible, cut your costs and increase your profits. That’s one of the reasons why David is such a successful businessman.

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