Golf Cart Dealer Marketing: Value Over Discounts

(Funny, yes, this is another article referencing a lemonade stand and my son - the other one this time. Always good lessons from lemonade stands!)

I came across this scene in our garage one late spring day...

Since the weather in Ohio had FINALLY taken a positive turn, my youngest son, Ian (9 at the time), and a friend had set up a lemonade stand.

And, in case you need a translation, it says, “Fifth customer gets their lemonade free.”

As I read this, I had two thoughts:

1. “Great thinking, kid. That’s my boy – following in his dad’s marketing footsteps!”
2. “What in the world are we teaching our kids?”

At first, I was proud of his creative thinking and marketing prowess. At such an early age, to figure out that creating an “offer” often helps to drive sales is pretty impressive, I think. (I may be a little biased!) And, it’s true, offers like this can generate interest, give you something specific to focus on, and ultimately increase sales.

My second thought was this: while there’s nothing wrong with special offers, discounts and teasers, depending on them for the long run can be detrimental. (Okay, maybe not so much for my son, but for businesses, in general!) I realized that “we” – society – are teaching our kids that FREE, DISCOUNTED, BUY-ONE-GET-ONE, or any other offer is the ONLY way to get people to buy our stuff. We’re teaching them that “salesmanship” is all about providing your product or service at a discount (or even free) in order to get someone to buy.

So, what if Ian had done the opposite?

What if, instead of offering the fifth customer a free lemonade, his sign said, “Nana’s Old-Fashioned Lemonade” and with every cup sold, they gave away a little notecard with Nana’s Old-Fashioned Lemonade recipe on it? Then, I bet they could charge $1.00 rather

than 50 cents. They wouldn’t have to give anything away, and they’d double their revenue!

Instead of discounting, they’d be providing added value.

Rather than cheapening their product, they’d be increasing its value.

Free, discounts, and other offers DO work sometimes.

But, what if you didn’t HAVE to give away your products or services?

What if you could actually charge full price...or even increase your price?

What if you offered so much value through your product or service that people would be willing to pay almost anything for it? When you educate, inform, and entertain, beyond just selling a great product, you build credibility and increase interest.

So, let’s stop discounting our products and services. Instead, let’s offer more value, more information, more help.

Maybe I’m being a little tough on Ian; he was only nine!

But, just so you know, I did NOT take away his iPad because he focused too much on discounting his product and not enough on offering value!

It just got me thinking...that’s all.

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This article comes from the book, Stop Selling. Start Helping. (And See How Your Business Grows!) by Matt White.