Too Expensive or Totally Worth It?
As I left my car repair shop yesterday, looking at my bill for fixing the AC and changing the oil, and knowing that I could have paid far less elsewhere, I thought of Nexstar members and how often marketing coach, Ed Cerier & I hear “how do we compete when other companies in my market charge much less?” The first thing we say is to keep in mind that the lowest price is not always the key factor. A good illustration of that point is that the most popular vehicle sold in the US is not the least expensive one.
As a consumer myself, I am often driven by price. I love deals. I look at my Groupon email every day and that discount is often the motivating factor to try new things. I shop sales at department stores and buy store brand ibuprofen instead of Advil. But in other cases, things like time-savings or quality are of higher value to me than price or discounts. I find that it is too much effort to collect and use grocery store coupons. I get my hair done at a boutique, not at SuperCuts. For a commodity such as an oil change, I would almost always go for the discount price, but for a purchase like new HVAC system – things like expertise, reputation, longevity, quality and guarantees are more important to me. I want to have that installed by a company that I believe has the technical expertise & ethics to do it right and that will still be around in 5-10 years to service it.
But back to my car repair story. As I do every time I leave there, I say to my husband “Wow, they charge a lot for an oil change — it is over 3 times more than Jiffy Lube.” And then I say “But it was totally worth it.”
So what creates that value for me? This company has a great reputation and they have earned my trust by exploring what is important to me and providing options from a manufacturer replacement to a less expensive “fix” whenever possible. But what really makes them stand out from their competitors is how very convenient they make it for me to do business with them. The shop is open from 6:30 am to midnight M-F, which means I can usually drop my car off after work and pick it up in the morning fixed & ready to go, so I can get to the office.
Not only am I willing to pay extra for things like trust and convenience; it is those very things that earn them my repeat business and good referrals.