Luxury Coach & Transportation

May 2019

Magazine for the professional limousine, charter and tour industry.

Issue link: https://lctmag.epubxp.com/i/1110601

Contents of this Issue

Navigation

Page 37 of 51

36 WWW.LCTMAG.COM Two Steps To Say No To Discounts MAY 2019 O ne of the biggest problems I see small business own- ers make is to use discounts as their primary form of landing clients. Unfortunately, when you use this strategy, you lose your pricing anchor and compro- mise your clients' future perceptions. Your clients will come to expect the discounted rate on future trips. "People get addicted to discounts. They don't get addicted to free." This is a quote I have used many times. This phrase was coined by Jon Taffer, who was the keynote speaker at the International LCT Show in Las Vegas. I love this quote so much and believe every entrepreneur needs to protect their pricing integrity no matter what. Yes, hopefully we can talk about how great Jon was and how his session helped you. I would like to hear what you have already implemented in your business to increase your profits. To avoid discounting your rates as a tactic to acquire new customers, I recommend you implement two things into your sales process. Please understand when I refer to your "sales process," I mean anytime you are discussing your business with a potential cli- ent, not just when you are in a sales meeting or at a network- ing event. NO. 1 You absolutely must qualify your prospect before you offer any type of discount or free trip. This means you need to look deeper than just the single airport transfer they are ask- ing about. You can do this with qualifying questions such as, "How many times a month do you travel out of town?" or "Do you regularly travel for work or business?" If they answer "yes" to the second question, then you need to follow up with the first question. If the prospect states he or she travels weekly, then you know you should be able to capture two transfers per week and possibly four if you can acquire the out-of-town travel. Two sedan transfers per week at $100 each X four weeks = $800 per month in revenue. An- nually, this client would be worth $9,600. If you can acquire the out-of-town work, this client's value doubles to $19,200 annually and this does not yet include any personal travel or as-directed trips. NO. 2 Now that you have qualified your new prospect, it's time for you to close. The easiest way is to offer an opportunity for them to try your service for free, but you must position your "pitch" correctly. Try something like this: "I would love for you to test our services for free because I am so confident we will blow you away with our service you will not want to go back to your current provider." Can you hear the confidence in your voice? I can hear it in mine. It is loud and passionate. It must be. If you take Jon Taffer's quote to heart and closely follow the two steps above, you will not only increase your num- ber of clients, but ensure protection of your pricing integrity (because you will not be offering discounts early in the client relationship). Make some money first, then comp a trip for your best clients when they least expect it. People love the unex- pected, especially when it saves them money. Profit Motives BILL FAETH | bill@limogrowth.com People get addicted to reduced rates. They don't get hooked on free. BILL FAETH is the founder of Limo University (www.LimoGrowth.com), Inbound Marketing Agents (www.inboundmarketingagents.com), and 23 additional startups, including Silver Oak Transportation of Nashville, Tenn. As a successful former operator and active advocate for the industry, Bill continues to invest into educating and training operators on how to grow, manage and sustain a more profitable business. You can reach Bill at bill@limogrowth.com. By Bill Faeth Don't take a haircut when trying to win over new clients. Hold the line on pricing and focus on selling your convenience, comfort, safety, and reliable service. LUXURY COACH & TRANSPORTATION MAY 2019

Articles in this issue

Links on this page

Archives of this issue

view archives of Luxury Coach & Transportation - May 2019