EndorsementRadio.com

I’m the kind of shopper that I hate to sell to. I’m transactional. I research what I want and then grind vendors down for the lowest price. I do it because I assume most salespeople are like car dealers and mortgage brokers. With these business models, it’s just a question of how bad they’re going to screw you. Typically, their pay is determined by what you let them get away with.

So I was shopping for a reverse osmosis system to give my wife for Mother’s day. I called up some vendors and found out they had some similar systems. Eventually, I found a company in my area that seemed to have the system I wanted for a reasonable price. Then I asked the standard transactional buying question. ”I’d like to work with you on this, but I think I can get it cheaper from one of your competitors. How much room do you have on the price?” His response stopped me dead in my tracks. “Unfortunately, we set up are business so that we don’t have any room to negotiate. I don’t believe you can get this same equipment from anyone else for less money. But if there’s anything else I can do to get your business, please let me know.” Needless to say, he got my business. It wasn’t rocket science. And it wasn’t painful. Painful is when we go back and forth playing guessing games about how much money he could help me save, but isn’t.

In my business, I get a flat percentage of what and advertiser spends. There is no need to negotiate for higher rates if I want a long-term client. It suits me to give my clients the lowest rate possible, so they will have a greater chance of achieving the success. If we define success as a 200% ROI, and my spots are twice as expensive as they need to be, I’m half as likely to get you to continue your advertising with me. It actually behooves me to sell more spots for a lower rate, and increase my likelihood for success. This, to me, is a much more fair way to charge for a service because it puts the buyer and seller on the same side.

If you want your customers to trust you, don’t play games. And don’t make them guess what you’re really charging. The devil you know is better than the devil you don’t. On the rare occasions that clients ask me about my commission structure, I tell them. I make a lot of money and they are ok with it. As long as I’m doing my job for them, they don’t complain. Transparency is also a great way to differentiate your self. Give it a try some time.