Good better best (a Russian poker strategy) also works on closing a sales or a deal

Nation building via learning and being the best in business

Early on while taking MBA, a professor in Problem Solving emphasized a good better best strategy in nego or sales closing.  Some of our more experienced sales staff do that.

That means when it comes to a prize questior or size of the deal, you put up first the biggest deal or most expensive product in the hope of that making a choice narrows you down to his/her price point.

The best deal probably would be cheaper or smaller

So last Wednesday, we were in the meeting where the party was proposing an investment deal.  They initially had a 2x deal in the vicinity of 7 number which seemed to be just right for him at his current estimated status in life.  Why dont we deal him the good better best strategy.?  Why not propose or offer him first the big 8 number deal as strategic investor.   But larger returns.   Not Just 2x but 6x but for a longer period of time and with cash dividends on the fourth year.

Surprisingly, initially he stayed with the initial offer and asked for more details:  computations, docs.

Did we do the right thing with good better best?

Making an exceptional, outstanding product - the only strategy you will ever need.

Looking forward to the future of business

The only central thing in a strategy is creating an exceptional, mesmerizing, product that squarely meet customer wants and needs.   ie building the best mouse trap  But many say that it is not enough.   You need marketing, sound supply chain HR, and finance tactics too   Yes.

But central to that is the excepttional product.  You must be unique. If you are a me too product, just like what is happening in PHL and elsewhere in the world, then the business has not future and destined to fail.  During the pandemic, many put up coffee shops and stay cation, airbnb structures.  Now many have closed shop.  Unless you have differentiated well enough, the business does not seem viable and will not last long.   I learned this from a Harvard professor who lectures at the GSB I worked for.  It was free.

So today, this involves upping customer experience.  

    In our business this can be translated to:

    1  Welcome arch

    2.  Multi colored shrubs, a riot of colors

    3.  Kakaibang tribute and interment

    4.  Having celebration nooks for birthday, and death annoversary

    5.  Continuity busiensses.  

Keeping customers for life.

Is big better; find out the contrast between VW and Ferrari strategies

From Bloomberg businessweek

Is big necessarily better?  Not so.  For once, "small is beautiful is correct"

VW went out on sales doubling binge. It sold 600,000 cars It was successful.  But its quality lagged badly and was behind quality among major brand.

But Ferrari actually reduced its production to only 7,000 cars and actually improved its profitability.   The reduced production actually enhanced its brand/image of exclusivity.   The founder, after learning for instance is 500 cars would only order 250 cars to created long  waiting lines an long lead ordering time

The Ferrari President Montemozolo notes, that quantity is good, but focusing on quality is much much better