The goal of a
pricing negotiation is to create a win-win sales result that brings proper
profit to the bottom line, while instilling a feeling of value and goodwill
with the buyer.
1.
Some just like to haggle. Others want to... but have trouble doing it.
2.
Supply and demand influences all pricing.
3.
Prices can rise
and fall, but the product mostly stays the same. (hotels & airlines)
4.
Offer three
price solutions – matrix pricing.
5. Explain “proper” price to shoppers. (apples to apples)
The
matrix for full-service catering often breaks each event component into three
or more levels of choice. The entree might have three selections of chicken,
but each has a slightly higher price because it is greater in perceived value.
The difference may be in portion size, bone-in versus boneless, a simple rice
or a risotto (one with shrimp and one without), or asparagus versus fresh or
frozen green beans.
“Mrs. Smith, I’ve created three approaches
to your request for a chicken menu. In all three cases, I’ve used a 10-ounce
boneless chicken breast. The first one, which is our Traditional approach, at
$27.90 per guest, has a fresh garden salad, baby new potatoes, fresh green
beans and a beautiful lemon tart for dessert.
The second offering is our Premium menu at $36.85 per guest, and
includes the Caesar Salad, seafood risotto, fresh asparagus and our exciting
chocolate sampler. Finally, I can offer you our Chef’s Value menu at $24.85,
which comes with the garden salad, mashed potatoes, peas and carrots, and a
great carrot cake for dessert. Mrs. Smith, whatever you choose, your guests
won’t be disappointed!”
The matrix
system of offering variety and choice to your buyers will bring huge rewards to
those who use it. It is the hottest selling and marketing concept that I’ve
been offering to my consulting clients over the last few years. This system has
been making many caterers a lot of money!
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