How Can I Sell Product At Full Price When There's So Much Discounted Product?

In response to yesterday's post about not having to give away the farm, I received the following question from Jan:

I became a catalog demonstrator of stamps because I wanted the discount for myself and because I loved the product. I'm a hobby demonstrator thinking about delving into the business side...But, in all honesty, there are a ton of quality crafting products that I can buy and get a discount on (and a lot of times free shipping). How can you sell catalog stamps at full price, when I think about myself, that I would never buy these catalog products at full retail catalog price?

Thanks for the great question, Jan.

The truth is, it's not difficult to sell your product at full price AND everything else in your business (classes, etc.), as well.  The obstacle you see before you is a common concern, but it's also important to realize this is a self-imposed obstacle.  In other words, it's something that you think.  It's not necessarily what is so. 

The good news is, it's not something you have to worry about IF you can accept what I'm going to say:

You are NOT your customer!

The features and benefits you're focusing on are NOT the same as the features and benefits your customer is focusing on.

Now... are there some people who do place their emphasis on the lowest price?  Sure.

But they're NOT your customer, either!

In every industry, there are discount sellers and there are premium sellers.  The discount sellers attract a certain type of customer, and the premium sellers attract a different type of customer.

Which would YOU like to attract?

If its the premium seller, ask for a premium price.  Don't compromise on that!  Are you going to get as many customers as the discount seller?  No.  But here's the thing... you don't have to!!!

As a premium seller, you're going to make more money with fewer customers, lower expenses and less time invested.

In other words, why be Dollar General, when you could be Bergdorf Goodman, instead?

Let all of the discounters compete with the other discounters. 

YOU market to the people who have no interest in discounts.  It's a much less competitive field... and MUCH more lucrative.

If you'd like to see a LOT of marketing ideas AND plug into a community of PROFIT-MINDED stamping business owners, I urge you to check out the Business Stampers Coaching Group... where we make money WITHOUT selling ourselves short!

Take the $1/30-Day Trial

Comments

[Blog JustOneCoolBlog]

Hi there! Do you use actively online social media websites?

[John Sanpietro]

JAN... The first thing you need to know is there is no one answer. I think part of the reason so many stamping business owners struggle is because they've been told there's only one path to success, and that's simply not true in any business.

If you want to do workshops, the first step is to start marketing and advertising your business. Friends and family usually make less-then-dependable customers. You have to let strangers know your business exists. Once you build up a customer list, you should be able to average 1 workshop for every 6 people asked (as long as you ask by phone or face-to-face).

If workshops don't work for you, or are not something you want to do, there are other paths to success, as well. Many of your company's top sellers aren't doing many, if any, workshops. There are so many customers online, for example, who would never attend and buy in a workshop anyway, that you could build a business that way with an entirely different customer base than you would find through home parties.

The important thing to remember is, there's room for everybody. Just stick to the fundamentals of running a good, profitable business, and you'll be fine.

As far as what I have to offer, to get your foundation topics down and start out right, I'd look at the book, Stamping Is My Business (http://www.stampingismybusiness.com/ebook.htm). I'd also look at the Business Basics Program (http://www.stampingismybusiness.com/basicsclass.html). If you're really trying to make a profit, I'd join the Business Stampers Coaching Group (http://www.stampingismybusiness.com/bscg.html). Then, when you have a better idea of what you want your business to look like, you can choose from any of the CDs (http://www.stampingismybusiness.com/cdinfo.htm), Classes (http://www.stampingismybusiness.com/classes.html) or Boot Camps.

You CAN succeed, Jan. You just need to plan your success!

[Jan B.]

Thanks to everyone for reply. So far, I have no customers. I have one lady who occasionally buys a stamp from me, of which I do charge full price. She is not interested in having a home party and only buys what really hits her from Stampin Up (may as well say the company). She used to be part owner of a craft store but didn't get along with her partner, so she bailed out. The store is still open, though. I offered her the SU demo opportunity, but she was not interested.

So I guess I have to contact 40 people to get one to agree to a home party. So, John, do you know the secret of where to find these 40 people, who I don't currently know. So far, anyone who I know and my family are not interested. In fact, if I gave them all my "precious" stuff, they would either throw it away or give to the Goodwill (only if they saw some value to give away).

So, John, if you offer me some kind of incentive, that you know the inside scoop of finding 40 people I don't know to ask to host a home party, I very well may sign up and buy the information you know. And I won't expect a discount from you. Because, aside from the business opportunity that SU offers, I love doing this, think it is something good for anyone who does papercrafting (a very fulfilling hobby), can help bring people together.

[John Sanpietro]

LYNNE... I don't think it's a matter of them not thinking the product is good-quality. Rather, I think they're focusing on customers who they don't think will care. As I said in my post, though, these are NOT the customers you should be marketing to.

MARILYN... Right, but unless you point that out in your marketing (or SU does), nobody will ever know.

SUE... And most of them require a minimum product purchase, as well!

KIM... And YOU are the most valuable part of your business! You're what sets you apart from the, literally, tens of thousands of other stamping business owners out there.

[Kim McAlister]

In addition to quality products, our customers get us! They get product experts who have access to multiple outlets for training, project ideas, trouble-shooters, and problem-solvers! People will only value you as high as you value yourself. If they want a discount, point them to the monthly promotion (31% off of MDS pages, cards, etc.). You can also make a card or some card candy as a "bonus or discount! "
Kim

[Sue Erickson]

And the big box stores may offer discounts on their product but they charge at least $20 per class if they even offer classes. Even they recognize that knowledge has value in hard cash in and of itself.
Sue
www.soggystamper.com
www.mydigitalcraftcorner.com

[Marilyn SanClemente]

Not only that, our products are backed by the SU warranty. Could you take your Big Shot back to the discount store and get a refund if it broke a year later? Mine broke and SU replaced it, no questions asked and they overnighted it at a cost of $35 to them.

[Lynne]

John, I have always been puzzled about why some Stampin'Up! demonstrators don't think our products are a good value. Look at the quality of our paper and the price. It's totally a better buy than the big box stores offer. I happened to be sitting in my car at a mall and a customer of mine was on her way of a craft store. She saw me and came to talk. She said she had been looking at their punches and that they were "junk". I am a total believer in our products and prices and never apologize. Do the box stores offer their employees conventions with free products or cruises or other awesome perks? Do they offer service and to the door delivery? Come on!