Monday, March 5, 2012

To Sell More Big Deals...Know why customers buy

Both Starbucks and McDonald’s sell coffee. Beyond price considerations, there are many reasons why some buyers prefer Starbucks while others prefer McDonald’s. McDonald’s has more lunch choices on its fast-food menu and caters to kids. Starbucks, with its upscale coffee-shop vibe, is more likely to be the destination of choice for business people meeting for coffee.

You know why you prefer Starbucks or McDonald’s. To sell big deals you need to know why customers prefer you. What value do you provide? Starbucks attracts a business clientele because customers can linger over coffee, and that benefit compounds Starbuck’s value with their customers. What substitutes are available? McDonald’s added coffee bars because top management believed a significant percentage of coffee-drinkers would opt for a less expensive cup of coffee if it was easily available. They were right. What competitive advantage gives you an edge? Both Starbucks and McDonald’s offer a variety of coffee drinks, but Starbucks has a competitive edge when it comes to the magnitude of choices.

No comments: