How to Sell at Margins Higher Than Your Competitors: Winning Every Sale at Full Price, Rate, or Fee (Hardcover)

Those of us who have read Steinmetz's How to Sell at Prices Higher Than Your Competitors (first published in 1992) were delighted to learn that he has co-authored a new book with William T. Brooks. The need for Steinmetz's insights is even greater now than it was 13 years ago, especially given the focus in this book on margins. Of course, this presumes that margins have been accurately measured, as have been those of competitors. For many of who read this book, I suspect, one or both assumptions are incorrect. Frankly, I am astonished by the nature and extent of ignorance and/or misunderstanding of margins. The consequences are predictable.

Consider these statistics which Michael Gerber cites in The E-Myth Mastery: "Of the 1 million U.S. small businesses started this year [2005], more than 80% of them will be out of business within 5 years and 96% will have closed their doors before their 10th birthday." These are indeed chilling statistics. Now consider this one: The average life expectancy of all businesses in the U.S. is 7.7 years. The reasons are varied, of course, but one of the most common is to sell a product or service for less than its total cost to produce or provide. If decision-makers in companies (regardless of size or nature) do not know exactly what the given costs are, they sure as hell don't know what the margins are. Anyone who challenges that statement are urged to re-read the statistics just cited.

Steinmetz and Brooks carefully organize and then present their material within 19 chapters, followed by an appendix, "The Premium Price Seller's Ready Reference Guide." (This appendix all by itself is worth far more than the cost of the book.) What especially impresses me about their approach is primary emphasis on effective application of the strategies and tactics recommended. To me, the word "downsizing" is frequently misapplied. The more appropriate word would be "right-sizing." Within the frame-of-reference within which Steinmetz and Brooks present their observations and recommendations, the key word is "right-pricing." Their expertise is based on dozens of years of real-world experience with thousands of different companies. They are determined, indeed passionate about helping decision-makers to answer questions such as these:

1. What is the total cost of what we sell?
2. Given that, what must our margins be?
3. What are general guidelines on how to price?
4. How can service be a decisive competitive advantage?
5. Why should we avoid those whose purchase decision is based solely on price?
6. How can we sell at higher prices with lower volume and thereby increase profits?
7. What are "the two cardinal sins" of selling? Why?
8. What are the indicators of over-pricing?
9. What are the indicators of under-pricing?
10. How to close on a sale when price is the only remaining barrier?

The observations and recommendations which Steinmetz and Brooks offer in this brilliant book they are, however, essentially worthless unless and until the first question has been answered accurately. It is impossible to manage what cannot be measured; fortunately, costs can and must be measured. Moreover, they must be monitored constantly. As marketing initiatives create or increase demand for what you sell, keep in mind Warren Buffett's assertion that price is what is charged for a product or service but value is what buyers think it's worth.

This book really does explain "how to sell at higher margins than your competitors" so that those who read it will be better prepared to "win every sale at full price, rate, or fee." I strongly recommend that you read it before your competitors do. Of course, if they do and then apply what they have learned, your competitive marketplace will become especially lively. Forewarned is forearmed.