Standardize, Standardize, Standardize Part Two
Posted on January 21st, 2008 in General |
OK. We discussed standardizing some of what we sell and maintain so that we can operate more efficiently. What happens if we standardize in another area? How about standardizing some of our Pricing? For example, have you ever stayed up ’til the wee hours of the morning working on a Price Quote for a prospective client? Should it be $333.00 per month? Or $325.00? Or, $ 335.00? As the hours tick by you’re still there, still vacillating between the numbers. Truth is that the hours of sleep you’re missing are worth far more than the few pennies you’re deliberating about.
What If
What if you had 10 different price points for your plants based on type and grow pot size instead of 112? For example, you probably have 3 different cost price points for 6" material. Six Inch Pothos, Ivy etc cost you $X, 6" C.E. etc cost you$XX, and 6" Spath etc cost you $XXX. So, while you may deal with 6 or 7 different 6" material, the six of them probably can be divided into 3 different groups. Apply your formula and, voila, you have three different prices to plug in, not 7. Same with 10" material. Ten inch Drac. Janet Craigs, Warneckii, etc cost you X, the next group of 10" cost you XX, and the third group of 10", say Kentia, Rhapis etc cost you XXX. Apply your formula and now instead of 12 plant prices you have three. Same for 14" material. By not dealing with the pennies, you’ve now cut the number of different price points down by two-thirds. Quite a time saver!
Back of an Envelope
Not only will this method save you some sleep, it will also help you when the prospective client asks for a price quote right then and there. You mumble something about "I’ll have to get back to you" and you’ve just lost your Sales momentum. What if you had been able to say, "Hmmm, let’s see. Ten 10" group A and 8 14" Group B, and the 12 6" Group A (for the TOPsiders). That would be a maximum of $XX dollars for the plants, $XXX for the Containers, and approximately $XX for the Monthly Maintenance. Could be less, Mr. Joseph but I can guarantee it won’t be more." Then you ask when would he like it installed, he says,"Thursday", and away you go.
Set it Up Once not Twenty Times
This standardization method can be used for plants, containers, and for maintenance as well. It enables you to quote off the cuff and close the Sale and it imparts a level of confidence as now you look at the plant material in a whole different way.
This method can be applied to selling product and maintenance as well. The trick is to …..standardize. No go out there and get ‘em, Tiger.
