A discussion about sales, sales tips and advice, and about those who land the deal

I just filled up my gas-guzzling SUV this morning.  I drove to a station whose prices for unleaded plus was about 3 cents lower their competitors.  I always feel good saving a few cents on gas.  My 10-gallon fill-up equated into a savings of 30 whopping cents when compared to the prices at other stations. 

Perhaps you go through the same mental gymnatics when searching for gasoline.  You, too, want to find the lowest possible price.  Afterall, we're getting ripped off by the oil companies, right?  At least that's what we've been sold for all these years.  A drop of a nickel in the price of a gallon of gas warrants a national holiday, while an increase of a nickel in the price of gas leads the nightly TV newscasts with talks of an oncoming depression.

So, feeling heady with my savvy purchasing of 10 gallons of gas that saved me 30 whopping cents, I stopped by Chilis for a quick lunch with a friend.  I ordered my meal, with an iced tea.  I got the bill.  Turns out, a glass of iced tea cost me $2.50.  No big deal, really.  It just figured into my $11 lunch bill.  Besides, I like iced tea.

Then I got to thinking about it:  Why does a glass of iced tea cost roughly the same as a gallon of gasoline?

To get gasoline, a big oil company has to locate oil reserves, pump it out of the ground, transport it to a refinery, refine it, and then ship it to a gas station.  We pay $2.50 a gallon or so for that process.

To get iced tea, you have to drop a tea bag into a boiling pot of water, let the water turn brown, and then pour it over ice.  We pay $2.50 per glass or so for that process (not counting free refills, of course).

Here's the thing that I can't figure out:  At what point did it become an outrage for gasoline to jump over $2 a gallon?  Likewise, at what point will I become equally incensed over the price of a glass of iced team?

Its actually an important sales question.  Oil companies have to spend billions on countering the "big-oil-is-evil-and-is-ripping-you-off" message that opponents to fossil fuels sell to us on a daily basis.  Conversely, none of think twice about ordering a drink to go with our meal at a restaurant.  The price doesn't matter.  We have no outrage towards "big iced tea" like we "big oil".  The concept of getting ripped off ordering an iced tea for $2.50 hasn't hit home yet...perhaps it never will.  By the way, its even more outrageous that "big iced tea" has formed an unholy alliance with "big ice", giving "big ice" more than half the glass in a glass of $2.50 iced tea. 

All of this whining by me goes to this central question for you, sales pro: What is the mindset of your customers?  Do you have to counter pre-conceived notions of your product and price in your marketplace?  If so, you need to make sure you do it aggressively and consistently.  Your message will become accepted truth over time. 

Likewise, if you have a product or service that nobody seems to think twice about when they're buying, don't just count your blessings.  Make sure you overdeliver your product or service, making your customers feel like they are getting what they paid for.  That's why most restaurants can get away with charging what they charge for soft drinks, iced tea, dessert, etc.  The atmosphere is usually what you're paying for, along with good service.  And, that's why we don't seem to mind paying for it.

It's another example of the importance of the psychology of selling, and how much it plays into our customer's minds when they are making a decision to buy or not to buy.