Business Workshop

11/18/2011


On November 18, 2011 Ron Baron, public speaker, entrepreneur and business leader gave a speech at the Salt Lake Community College Miller Business campus. His topic was on how to sell products or services higher than your competitors.

“People, no matter what you’ve been led to believe in life, when you own a business, it’s OK to earn money” Ron said. Shortly afterwards Ron explained that business owners, manufacturers and distributors don’t have to lower their prices to get their merchandise or services into the marketplace—especially in this economy because most people like to spend lavishly on quality products to show them off.

Mr. Baron then went on to say that most clients like to manipulate manufacturers, distributors or service providers with rumors of being able to get what’s being offered to them someplace else cheaper. However the clients don’t say that others might not be as reliability as you or be able to make efficient deadlines.

“Clients try to make you think it’s all about the money—but that’s not true. What they really care about is: quality, service, results, trust and relationships. Price is always more important in the mind of the seller than in the mind of the buyer” Ron said. As the lecture continued, Ron went on to explain about the tactics most clients use in an effort to intimidate producers into lowering their wholesale prices.

In one situation, a distributor will meet with a market owner and accountant. The accountant is trained to make the seller feel comfortable until the seller quotes a price. Suddenly the accountant will throw their papers up in the air in a mad panic to have the price lowered. In another situation, a seller will be in an office with the owner as the competitors prices are seen on the managers’ desk in plane site. Suddenly the owner will have to leave the office for a minute and when he or she returns, they try to negotiate a lower cost. Ron affirmed that it’s all a game and when you realize there’s no danger involved, you come to play it more effectively. Nonetheless, Ron Baron’s lecture just wasn’t about keeping the market from ripping off small business owners; he also explained how to determine ones competitive edge.

“People love to pay for a convenience while others are willing to pay more for things so they can justify why it’s special to them…The founder of Dominos Pizza is worth a billion and a half dollars and does anybody know why? Because he supplied a demand that nobody else considered at the time—he offered pizza delivery. The owner of a lettuce company was near bankruptcy before he decided to cut the lettuce in half and call it Table Ready Lettuce; now he’s the owner of the--A Fresh Market franchise” Ron said.

Mr. Baron then went on to ask the audience what service they can come up with to become wealthy. As the crowd begun to think, Ron told a story about a company in the 90’s that was trying to come up with a gimmick to sell bottled water because at the time anyone could get it everywhere—for free. They came up with a plan to call it purified water and Evian was born, which just so happens to be naive spelled backwards.

In conclusion Ron wanted everyone to know that once they become established in the business community, when they hear a client say thank you, that’s an indication to start raising prices—because good business hardly ever has anything to do with money.


—Dante Antonio Dominguez



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