DWC Home | Magazine | Back Issues | March 2006 | Managing For Money

When Products Are the Same, Education Is Your Edge
It begins with product knowledge, but goes far beyond that to selling more in less time and at a higher profit.

by Steven C. Bursten

A recent Wall Street Journal lead story: “As Detroit Slashes Car Jobs, Southern Towns Pick Up Slack.” The story tells how Osceola, AR, clinched a new plant with a Toyota affiliate by improving schools. “The new jobs . . . require that workers have a decent education. Towns understanding this new math are winning the work.” The story went on to tell how nearly one for one, manufacturing jobs lost in the North are being won in the South—a rare story in American headlines.

Just as a town can compete and win an auto plant with education, your business can compete and win with education as your edge. When products are the same, on the Internet or at a box store, professional sales skills will add value to the customer and beat lower prices three out of four times on shop-at-home appointments.

EDUCATION SELLS QUALITY AT HIGHER PRICE
As co-founder of Exciting Windows! and Window Coverings University, I believe strongly in education. At our Exciting Windows! annual conference we heard Len Casey tell how education impacts upscale home furnishings sales (see page 38).

As the only winner of the DuPont International Award for Excellence in Marketing for two separate products, and as president of Heritage Kitchen Cabinets, America’s highest quality manufacturer, Casey could tell with authority what it takes to win when selling premium products. One of his most interesting insights is research showing that over one-third of customers who purchased home furnishings wish they had bought upgraded products. When you know your customer will be happier with better, you are encouraged to sell the best!

FLYERS BEAT COSTLY ADVERTISING
Casey went on to compare the difference between costly advertising and the power of proactive communications. In today’s environment advertising isn’t working as before—lead cost today is estimated at $175, higher than ever. Instead, simple flyers, door hangers, networking and customer follow up are beating newspaper and radio by a mile. Why don’t more dealers use them? It takes management scheduling and effort.

Independent business owners don’t understand the principles or how to apply them. Franchising, an exploding phenomenon in window coverings, makes training a core value. Franchisees learn to get appointments at low cost and often sell $200,000 the first year—a level achieved by fewer than 20 percent of window coverings business owners after five years! Franchises prove the power of education.

CLOSE MORE AT HIGHER MARGINS
Once you have an appointment, the challenge is to close the sale without reducing profit margins. Again Casey, and other speakers, showed how education is the answer. To reinforce the point, Glen Karr of Winnipeg, Canada a multi-million dollar window coverings retailer, told how 50 retailers dropped prices to compete with Home Depot when they came in the market. “I knew they were going to kick my butt no matter what I did, so I decided to raise prices 10 percent,” he said. “The other window coverings dealers are gone today and we’re still growing.”

Story after story, from New Jersey to Illinois to California told the power of education to win against competition.

PRODUCT KNOWLEDGE: THE BEGINNING
Winning over competition begins with product knowledge, but the real difference is understanding customer motivation and controlling the sale. At industry seminars and events, I am asked over and over how to win against low-cost competitors.

When I ask how they present products I hear the same story every time: “First, I measure the windows. Then I ask the customer what product they want and bring in different varieties, say real wood and faux wood blinds, and maybe different manufacturers. When she asks me the difference in price and I tell her the cost and features of each.”
That, folks, is not selling. Anyone using this technique deserves to get beat. The only thing you have to sell with this method is price. There is little value added by the sales consultant.

COMPARE TO A PROFESSIONAL
A professional will begin by making a friend on the phone. Between polished phone skills and guiding the customer to a helpful company Web site, the consultant pre-sells the customer before arriving for an appointment. Then, by touring the home, building credibility with intelligent questions and a personal portfolio of photos and information, a professional will work with the customer to decide products and treatment ideas before bringing in samples. Then, the final step will be to determine the budget range the customer can accept and willingness to purchase today.

Only then will a professional bring in samples and take measurements. The sale is automatic when the exciting product is within the budget agreed. Everyone is happier with this approach—customer and consultant.

Yes, education is the edge. If you want to know more, send for my booklet, “How to sell Concepts instead of Commodities”. Just e-mail. Listen to sales tapes by Tom Hopkins and Brian Tracy. Read books by Zig Ziglar. Attend industry events that teach sales as well as product technical info and design concepts. When you educate yourself you will sell more in less time at higher profit and customers will want to buy from you again and refer you often. That is what education can do for you!