Self-Made Millionaire Grant Cardone: 6 Ways to Not Lose Business to Walmart
How many times have you bought something just because it was cheap? We all have different buying motives at different times. Sometimes we buy something for appearance, other times for performance. Sometimes we buy for safety, other times our dominant motive is longevity. Sometimes, we just want something economical and cheap. The idea of buying something just because it’s cheap is what I’ll call a Walmart purchase. Walmart purchases happen when you don’t see the value in either the appearance, performance or safety etc. of a higher priced alternative.
In other words, Walmart purchases are made when not enough value is shown for spending more. Perhaps one of the reasons Walmart is so successful is because companies around the nation don’t know how to position and sell their products.
Not everyone who is at Walmart is financially strapped—there are plenty of millionaires driving Ford F150s driving past your store to go shop at Walmart.
They’re going to Walmart because they don’t see the value in your products.
In sales, money will find what people perceive as valuable; not the lowest price. If a prospect isn’t completely convinced of the usefulness of your product or service, that person will elect to do something else with his or her money—or they’ll just find a cheaper version of it.
A lower price won’t necessarily sell your product. Walmart will always beat your inventory selection—you can’t afford a huge warehouse to stock everything from kids shoes to sofas to almond milk. A lower price will not get your clients to come through your doors. Unless you are Walmart, whose entire business models are built around very small margins and high controls on their inventories, the “lowest-price” approach will fail you.
Plenty of stores that have used the lowest-price model have filed for bankruptcy or closed their doors.
A lower price can convey a reduction in value to people. Learn how to sell your product and justify the price by building value, selling yourself and your company, and creating a wow experience.
If I sell you a book for $30 and you give me $30, the reality is that you either believe that the book is worth more than $30, or you don’t value your $30. You might feel like the book is worth $30, but because I didn’t really convince you that it is worth more, you may decide that your money would be better invested in dinner with the family. People will not give you any amount of money if they think what they are getting is worth exactly that much. They will only do so when they believe that what they are getting is worth much more!
Here are 6 ways to enhance value to make sure your clients don’t decide to spend their money at Walmart rather than you:
1. Do a better job of identifying what the buyer is trying to accomplish with your product. “What is the number one thing you want this product to do for you or help you do?”
2. Show how your product’s worth is greater than the price you are asking for it. Take the time to creatively build value that exceeds price and ensures that the prospect is making the right decision.
3. Show how your product will sufficiently solve problems and why the customer will love it. People buy for two reasons: (1) to solve a problem; and (2) for love and to feel good. If they don’t believe one of those two things, the price will not matter. “On a scale from 1 to 10, how would you rate this product?”
4. Be sure that the proposition you are presenting is within your customer’s financial means. Having too much of a product is the fastest way of forcing you to cut your price.
5. Become thoroughly versed in the fact that price is a myth—one that is disproven every day when people give up their money for something they desire. Check out my book, Sell or Be Sold, in which there is an entire chapter on this topic of the price myth, how it is a destructive belief, and how it is destructive to creating your own economy.
6. Give customers great service—When I was in my twenties, I was selling a highly competitive product. I was meeting with a prospect on a very hot day, so I asked him if he would like something to drink. He said, “I would love a Diet Coke.” I left him and came back with a silver platter, one glass with ice and one without, straws in both, and a can of Diet Coke.
As I pulled the tab and opened it for him, I smiled and asked, “How would you like it—in the can, a glass, or over ice?” The client looked at me and said, “Wow, nobody does that. You should be selling luxury yachts or something!”
I closed the deal.
When you offer great service, you increase the perceived value of your product or service. You have to sell people on your product’s value, get them excited about it, and make them confident that it will solve their problems and/or make them happy. If you don’t, they’ll be making a trip down to Walmart.
If you’re not giving any more service than what people can get at Walmart, why would they shop with you?
It’s only when the value exceeds the price that price is no longer an issue. If you’re not making sales, you’re not showing enough value. I put together my Business Builder Package for anyone looking to increase sales and grow a business. Don’t let the Walmarts of the world take your sales!
Grant Cardone is a New York Times bestselling author, the #1 sales trainer in the world, and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, social media, and finance. His 5 privately held companies have annual revenues exceeding $100 million. Forbes named Mr. Cardone #1 of the “25 Marketing Influencers to Watch in 2017”. Grant’s straight-shooting viewpoints on the economy, the middle class, and business have made him a valuable resource for media seeking commentary and insights on real topics that matter. He regularly appears on Fox News, Fox Business, CNBC, and MSNBC, and writes for Forbes, Success Magazine, Business Insider, Entrepreneur.com, and the Huffington Post. He urges his followers and clients to make success their duty, responsibility, and obligation. He currently resides in South Florida with his wife and two daughters.