What kind of difference does one degree make? Well, changing the temperature by one degree means the difference between very cold water and frozen water. One degree of temperature difference is the line between hot and boiling water. That crossover line in physics, business, and our personal life makes all the difference in the world.
One of the market segments I’m actively involved in negotiates large orders for high-end luxury items. These are meaningful, significant orders that with or without warning can flip on or flip off. One degree of price difference or one percentage point can literally make the difference between landing the order or not. The trick is discovering what that very fine and sensitive line is. The key to do that is to have very good and open dialog, relationships, and true salemanship with our customers.
Now, the big mistake that is pushed to the other direction is to shift five degrees. Going down five degrees when the water is already frozen still results in frozen water. Add five degrees to boiling water and it will keep boiling. Rather than one percent discount given giving five percent discount still ensures the order, but at much less profit.
As you’re looking at potential business opportunities or to win over a customer or client make sure you find out what that one degree shift is that can be made that will guarantee to flip on the opportunity. If you want to see more on this theory check out the video below.
Go forward, zigzag, and prosper.