Ouch! Sometimes you eat the bear, sometimes the bear eats you. I`m curious. What were you willing, at the time, to sell them for? If you sold them for $5 would you have made any money? As I like to say "what money I lose on this deal I can make it up in volume" (smile). Kind of like when my wife goes shopping and tells me that the stuff was 1/2 off. If she was really serious about saving money, she should have bought two (smile). Other questions: Were your competitor`s baskets "apples to apples" (comparable)? Why do you say now that you should have done it? What would you expect to gain? Could you, perhaps, agree to do this first order at $5.00 with a written agreement that future orders were at "X" $`s. Rule #1 - never give anything away without getting something in return.
Hard for me to say much more not knowing the whole scenario. Rule #2 - people will spend more than they planned on spending if they recognize some sort of benefit (real or otherwise) that makes it worth their money. Just ask me every time I buy a new car (smile). Rule #3 - people will always go with the lower price if they do not see a benefit of paying more. That`s where you come in. Let`s say they would do it for $5 and you wanted $6. If this is obvious, I apologize. But, you don`t have to justify the $6, only the difference. Why is your product and service worth the extra buck? I`m betting there are reasons besides staying in business (smile).
Keep plugging away. Also remember that every time they say "no" it is worth exactly the same amount of money as when they say "yes". This is kind of a quiz. I`ll let you chew on it a bit but, it is true (smile).
Hi Craig, just to let you know I haven`t been ignoring you or your question, but I have been busy. Not with work though. My Dad (he`s 83) fell 3 weeks ago while he was in WA. So he drove all the way back to CA to go to the drs. He was afraid they would put him in the hospital. So, I have been going back and forth to his place helping him out. Luckily business has been slow, (which means I should be out pounding the pavement) As to your question, For what they wanted, it would have cost me $6 per. I ammended the proposal and created something comparable, that I could give them at $5 per, but they had their mind set. It was for a major hospital in the area and would have brought in more orders for special events. (nurse`s conventions, employee appreciations, etc.) Not to mention the fact that my business cards would be in 900 baskets. The lady I was negotiating with, ended up purchasing small items, and putting them together in a small plastic tote bag as the employees walked into her office. She had boxes stacked to the ceiling. I wasn`t up against any competition that I know of. I create my baskets from start to finish myself. From the basket or container used, to arranging the items, to shrink wrapping, and putting on the finishing touches. Every basket is hand done. And every one is going to be unique, even if they have the same items in them. I take pride in what I do, and if it doesn`t look right to me, I take it apart and start over. I feel my time is worth that extra buck.
Sorry to hear about your Dad. My wife has been going through exactly the same thing with her father. She`s been flying back and forth to California trying to help out with her Mom in particular.
I`m going to throw in with Craig L on getting a fair price for whatever it is you offer. There`s always something for less and there is usually a reason for that (smile). In your case, like you said, you did not compete with anybody but rather with a "do-it-yourselfer". Now that your prospect has had a chance to savor the rewards of going it on their own, maybe she is ready for a change (smile). Certainly, her time must be worth something.
If not her, there are many others who would be willing to pay a little extra. Your challenge is to convince people that by "investing" in your product they will achieve a healthier bottom line. I did see some posts that suggested that you give away some baskets just to give them a chance to see how they sell. I would not reccomend that but you could put some out on consignment. If they sell within a given period they pay you your cost and keep the profit. If not, you take them back. That being said, I would be very careful about not setting yourself up to provide all your transactions on consignment. Lot`s of pitfalls!
Good luck and hope your Dad is feeling better!
Sound advice. And the "budget question". Good! Could start a whole new forum on that question alone. And the old axiom of "How can you tell when a sales person is lying to you? Their lips move." applies equally well to buyers (smile).
Actually, there is a thread on this forum, which I started, on proposals and budget.,(somewhere)
When I first started going after this particular sale. Just a basic rundown, I was placing baskets in the conciegre office at the hospital, and they were interested in my mug baskets, that were going for $12 -$15 ea. So, I assumed, (big mistake on my part), that was their budget, and nobody brought up that point, until after the proposal was presented. I`m learning from my mistakes.
I also knew, from my research prior, that nobody else could do it, at that price, either.
I went to Barnes and Noble this morning and picked up the book, "Selling for Dummies". I meant to get on this thread prior to going, so that I could look for the book that Craig (salesdude ) had recommended.
Craig, tell your wife tohang in there. As for my Dad, he`s back to his old cranky self.
Hope everyone has a great day.
You got the cranky part right (smile). But then again, he was cranky before (smile). "Selling for Dummies" eh? I should read that. Appropriate (smile). The book I recomended was "Relationshop Selling" by Jim Cathcart. Oh, and the budget" topic. I just started one (smile)