eKourier April 2020

FEATURE

Visiting centres and speaking with our Teams, I have often heard Team Members referring to their rates as the cheapest in the area when discussing performance. I sometimes interpret this as being said with a sense of pride. Is this because Teams are fearful of being priced too high and therefore losing the sale? Life is certainly easier being the cheapest. PRICE IS WHAT YOU PAY VALUE IS WHAT YOU GET

why your price is higher, does the lower price from a competitor confirm a meaningful difference in product and service quality. We are all aware that discounting and aggressive pricing are strategies adopted by the competition. Weaker competitors are quick to lower their prices or discount. Discounting destroys value, degrading the value of your product. This approach is not a solution that delivers sustainable performance, it creates long term problems, educating customers to expect lower rates for your product or service. How often do you wait for the mid-year or end of year sales to make that purchase, or you know when you walk into a particular retailer they are open to negotiation? Discounting can also attract the wrong type of customer, somebody who really can’t afford to pay for storage but has no choice but to take storage is going to look for the best deal in town and hope for the best. Discounting is not a game we wish to play, instead the reverse of this, we wish to be a “strong competitor”. The challenge is to create and sustain a brand and service level that supports a premium pricing strategy. Sometimes it can be as simple as delivering consist- ently our “Store with People Who Care” philosophy. At Kennards we are not discounters or negotiators, we are priced for quality and value. This is an ongoing process of dialling up and dialling down our prices to find the sweet spot to maximise revenue and maintain a healthy pipeline of enquiry. You can influence that sweet spot so that we dial up more and you can be proud to say you are the most expensive competitor in your market and customers will love you.

M y question is what needs to happen in order to become the most expensive competitor in your market, and still have customers lining up to do business with you. Delivering value not price is key to achieving a premium. There is a quote I have held dear for a long time that describes this beautifully “price is what you pay, value is what you get”. The premium on what you offer is a direct result of you. Automated pricing systems use science to establish a market rate based on data points. Market signals like supply and demand and competitor rates. Teams have the power to influence that rate to create a premium above market. “This is the value you place on your own customer service and ability to provide the right solution for the customer.” How to create a premium experience, understand how you compare to your competition to know your competitive edge. Be prepared with a confident, knowledgeable response that helps the customer decide to store with you.

Making a purchasing decision is 70% emotional and 30% rational. Amy Cuddy a Social Psychologist, talks about selling as the delivery of warmth and confidence. Care about the customer, know their name and their story, build rapport and provide a solution that addresses their concerns and satisfies the customers’ requirements. “Delivering value” you are not just renting a space you are helping someone out of a situation and providing peace of mind. This is the emotional side of the selling equation. Covering the rational side of selling is about storage being so much more than just a space. Convenient access, simple payment methods with no gotcha fees, and clean, professional and secure storage delivered with a smile and empathy, so that customers feel they are being looked after. Explain your value to the customer and help them understand AT KENNARDS WE ARE NOT DISCOUNTERS OR NEGOTIATORS, WE ARE PRICED FOR QUALITY AND VALUE

Darren Marshall Chief Operating Officer

7 Kennards Kourier April 2020