web analytics

Author: Sterling Beck

Sales Tip – How to Price Something to Sell

A good friend of mine recently told me that his wife had started selling handmade mittens online. He showed me the items and I was amazed at the quality. “How long does it take her to make a pair of these?” I asked. He replied that she spent about 5 hours on them and was selling them for $10 each. $10. For five hours work. I was amazed; he explained that since she was home with kids it gave her something to do and that she was content with the extra spending money it earned her. In today’s world of eBay and Etsy it’s easier than ever to sell something online. The hard part is determining how much to sell an item for. For my friend’s wife she was pricing her item at what she would be willing to pay for a pair of mittens. More often than not, this is a terrible way to price an item. There are millions of people online each with different incomes and different expectations. The range of what a person may pay for an item is based on so many complex variables that there have been literally dozens of studies done on the psychology involved in the practice of what consumers will pay for a product. I recently overheard a discussion where a good friend of mine was explaining that a particular...

Read More

A Lesson in Customer Service from Thomas Cook

Bob Farrell is well-known for founding Farrell’s Ice Cream Parlors. For the past three decades, he has offered corporate seminars and provided motivational speaking on the topic of customer service. He famously recounts a letter he received after he sold his chain of ice cream parlors to the Marriott Corporation from a long-time customer. In the letter, the customer recounted how he had loyally eaten at Farrell’s Parlor and was always found ordering a hamburger. With his meal, Farrell’s was always happy to provide an extra slice of pickle at no charge upon request. In the customer’s letter he mentioned that, for whatever reason, during his last visit to Farrell’s, he was told by his server that extra pickles were no longer provided free of charge due to corporate policy. But, if he was willing to pay a small amount he could purchase a side of pickles. The customer decided if that was to be the case he would not be frequenting the restaurant any further. Farrell’s responded to the letter and famously took up the cause of giving the customer the pickle as being an example of the importance of going the extra mile in providing customer service. The concept of going the extra mile to set oneself apart from the competition remains very much alive and, as a result of the viral nature of the internet, is...

Read More