Punta Cana: Price or Value

Recently I took a vacation to Punta Cana, and I was reminded of Warren Buffett's words: "You only have to do a few things right in your life so long as you don't do too many things wrong." Price versus value quickly became business lessons learned in everyday transactions.

Differentiation and value added:

One afternoon as I was walking the local market, I realized that every vendor wanted my attention as they tried furiously to offer their products. Stopping at the first vendor’s station, he gave me a small gift while engaging in conversation with everyone in my group. After a few minutes, the negotiations began. What he needed was a sale – any sale. All the merchants offered similar products. What differentiated them? How did they engage with us? What value did they add to the transaction? We bought from the merchant we felt offered the best service and the best package.

The lesson:

• how you treat a client matters
• calculate cost quickly and offering package deals where possible
• offer value added options

Not every client wants to build rapport. Some just want to buy your product:

The next afternoon, I was approached by one of the third-party vendors at the resort. He insisted on talking with me as if he knew me. Asking about my plans for the day, how everyone in my group was doing, and then asking for the sale. Being on the receiving side of such conversations gave me reason to pause. I quickly realized how insincere the questions and transaction seemed to me. There was an ulterior motive to the questions which resulted in my wanting to avoid that part of the resort in the future.

The lesson:

• when building rapport, be sincere
• learn to read people - timing is everything
• determine what they need before offering your product/service

Good customer service includes offering creative solutions:

We were celebrating birthdays and were told the resort offered complementary birthday cakes. All we had to do was ask the customer relations person. What should have been a simple transaction turned into a nightmare. The representative began the transaction with a very bad attitude. She didn’t make any attempt to accommodate the request, continued to say “no” to every suggestion, and defended herself to someone not involved in the transaction. Being beyond disappointed that a small request had turned into an unpleasant situation, we later murmured about how we would have paid extra had we been treated with respect and offered a creative solution.

The lesson:

• think strategically about the need and offer creative solutions
• beginning with a yes/can do attitude can change the tone of the transaction
• the cost to keep a client happy will always be less than the cost of reversing a negative experience.

The week ended nicely, and a good time was had by all. At the end, these three lessons remained…

"Price is what you pay. Value is what you get." Warren Buffett

#puntacana #businesslessons #growth