International Door & Operator Industry

SEP-OCT 2015

Garage door industry magazine for garage door dealers, garage door manufacturers, garage door distributors, garage door installers, loading docks, garage door operators and openers, gates, and tools for the door industry.

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Page 35 of 112

Remember the children's story, Goldilocks? What did Goldilocks say when faced with choices of a place to sleep at the home of the three bears? "This bed is too soft. This bed is too hard. But this one is just right!" Having three choices when it comes to shopping is one of the most used selling strategies in the business world. Why? Customers like having choices. They want to feel in control of the purchasing process rather than being sold something. That's why I am such an advocate for a good-better-best selling strategy for the garage door business. In addition to putting the customer at ease it is also a built in way to improve proft margins. Providing a three tiered price point allows the customer to choose the product based on perceived value as it relates to the benefts each price point offers. The result is the customer purchasing rather than you selling, a much stronger position to be in as a marketer. A GBB (Good-Better-Best) pricing and positioning strategy allows this to happen. Three's the Charm People tend to rate things in blocks of three. Horse racing for example scores the race win, place or show. The Olympics award gold, bronze and silver metals for winners of events. Basically we tend to recognize three levels of performance. When it comes to selling products, we've adopted good, better and best. SALES&MARKETING Continued on page ## by Dan Apple V O L U M E 4 8 I S S U E 5 O C T O B E R 2 0 1 5 33 We can credit Sears with being one of the frst retailers to use a tiered pricing strategy. For those of us that are old enough to remember, Sears was THE place you went to buy home appliances for a very long time. For that matter, about everything else too! Remember the phrase "Sears Best". When you were shopping for a new washing machine, who didn't want the best? We may have wanted it but our pocketbooks dictated otherwise. So Sears had two other price points to choose from. Taking notes from the Sears playbook, most retailers today use a similar strategy. Go to an Apple Store to buy a new computer, there are three versions, MacBook, MacBook Air, MacBook Pro. Same basic computers that do mostly the same stuff, just more bells, whistles and horsepower as you move up the price range. Need your morning cup of Joe? Starbucks is pleased to offer theirs in Tall, Grande and Venti sizes. Need to take a trip? Airlines that once only offered coach and frst class discovered they could add an in between price point and call it "business class". Same seat as coach for the most part but they let you board sooner and put you near the front of the plane for which you are willing to pay a premium. Finally, how about the largest consumer product you'll ever buy, a new car. Let's say you've settled on a Toyota Highlander. Three models you can choose from include LE, XLE and Limited. All three will get you where you want to go, just depends on how much style and horsepower you need. "Three's the Charm...we tend to recognize three levels of performance. When it comes to selling products... we've adopted good, better and best." GOLDILOCKS SELLING GOLDILOCKS SELLING Continued on page 34

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