Episode Transcript
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Speaker 1 (00:04):
Hi, you have done to the censure.
Speaker 2 (00:10):
Wow for you your.
Speaker 3 (00:19):
Yo. It's a pipe man, It's movacal Monday and our
positively pipe Man segment and we have again our resume
expert on business that is going to share some powerful
business strategies with us. So let's welcome to the show,
Michael Barbarita. How are you?
Speaker 1 (00:38):
Thank thank you Dan. Great to be here. So today's
segment is not something that business owners missed out on
again as as it's most of the strategies that we
talked about, and that is packaging and bundling services together. Now,
one of the five components that make an offer compelling
(01:03):
is packaging and bundling because there's a perception of value
when you package things together. When I was in the
ski business, eat retail business, everybody packaged skis bindings and
boots and I'm sorry, skis bindings and poles. Sometimes skis bindings,
boots and poles, but mostly sk skis bindings and poles.
(01:26):
What we've done, what we did in addition to that
because and the reason why the industry always did that
is because there's a perception of value when you put
things together. So what we did is we extended that
out to many different areas of the business. We had
packages with skis, boots I'm sorry, skis, bindings, poles, and
(01:50):
access to certain accessories like goggles, so that everything would
be together. We did it with multiple scenarios. And one
of the most successful things we did that nobody did
even after we it was successful, which I can't believe,
is we took the most popular ski graphics from the
best selling skis and we went to the clothing department
(02:14):
and we matched up those graphics with a sweater, a parker,
a pant and hat, four component clothing package and they
flew out the door because once again the perception of value.
And yes, if you added up the components, okay, it
(02:35):
would be more expensive individually if you bought it Ola Cot,
but only by a fraction.
Speaker 2 (02:41):
It wasn't like, oh my god.
Speaker 1 (02:42):
And what we ended up doing is because the customers
stood away from the Ola coat because they wanted to
buy the package as we increased the average dollar per
sale of the customer.
Speaker 2 (02:53):
And it worked famously.
Speaker 1 (02:54):
And so business owners need to understand what they can
package and bundle together so that they could give a
better perception of value and make their offer more compelling
and so uh, it was. It was a great way
to show the customer more value, and it was a
(03:16):
creative way of packaging more products.
Speaker 2 (03:20):
Uh, And we did it.
Speaker 1 (03:21):
We did it in accessories too, with sunglasses goggle combinations,
and so it was it was it was and and
goggle glove combinations. Those those things were incredibly valuable and
they flew out the door. And despite the success of it,
(03:41):
nobody copied it. And that's what's so amazing to me, right,
and we can have that success that that nobody copied
it because you know, when you're in the retail business,
you know exactly where your competitors are doing your shop
their stores, right, and you know exactly what the competitors
are doing, and you know, you see what the customer
(04:04):
traffic is like, you see what customers are attracted to.
And despite all that, competitors never packaged clothing ever.
Speaker 2 (04:15):
Ever. Wow, it was unbelievable.
Speaker 3 (04:17):
Well, what's amazing you're talking about retail because before I
was in this business, before I was in the financial business,
I was in retail for ten years since I was young,
in the pool and spa business and patio furniture as well,
And so I remember I worked at Displace Heroes. I
had been around for sixty years, and they gave you
(04:39):
this book to sell with. The book was for pricing,
and people would come to buy a pool as an example,
and you tell them how much the pool was, how
much the filter was, how much this was, how much
it was like ten different items. And see, this is
why I talk about packaging all the time, because people
(05:02):
love to get a deal, and they perceive a package
is a deal, and they need all this stuff anyway,
even you know you reference in one of the other
episodes about McDonald's. Not many people know this, but when
you buy a value meal at McDonald's, which is package,
it's anymore than if you bought it all separately.
Speaker 2 (05:22):
I know. I don't usually recommend.
Speaker 3 (05:26):
That, right, you know, but like, but people will buy it.
And even the people I know that, I tell them, listen,
just buy it separately. You're paying the same price.
Speaker 1 (05:37):
Nah.
Speaker 3 (05:38):
Because they also want it to be easy. They don't
want to be overcomplicated. And so what would happen is
I was always, out of nine stores, the number one
pool salesperson have the whole chain, because I was the
only one that did something that nobody else was doing. Again,
blew my mind that even my competitors on the sales
(06:00):
floor weren't doing it. But I just decided, you know what,
I'm not gonna do this nickel and diming stuff because
I don't like when it's happened to me. And that's
what it is. When you say, well, if you want this,
and if you want this, it's just nickel and diamond,
it turns people off. It's more for them to think about,
it's more for them to say no to so many
(06:20):
myriad of reasons why it's not a good idea. And
I just used to say to them, Okay, if you
want to pool with everything, it's this. And what I
did was I created my own packages that also included
the highest commission the best of everything, you know, and
(06:41):
that goes back to one of your previous episodes. It
allowed me to downsell, you know. So whatever package I
gave them was too much for them or they didn't
need certain things, I could say, well we could do
this type of thing, but it was still a package.
And people don't really necessarily always want to know all
the details of what they're getting. So I had packages
(07:04):
with Dee filters. But then I could down sell them
to a sand filter, you know, which would be less money,
and they don't really know the difference and all that stuff,
and they don't really want to know most of them,
you know. And then they just want to know they're
getting a good deal. They want to know they're getting
everything that they need in the package, and they'll buy
the whole package and in turn end up spending more
(07:26):
because what also happens, as you know, is they'll start
asking what they could do without, and they'll start taking
things off. If you nicke on diamond, well do I
really need to filter? You know, you know, and they
will literally ask a question like that, which is silly,
but that's what people do when you nicke on diamond
like that, and they can't figure the math out in
(07:48):
their head, you know, so they'd rather just know, here's
what I'm spending, here's what I'm getting. And because of that,
like they like Labor Day, which is one of the
biggest sale days in the year, okay, or or or
Black Friday, people were lined out out the door and
other salespeople would be sitting there with people for like
(08:10):
an hour because they had to explain what all the
different things is and while they were with those people
for an hour. It took me five minutes to sell
the pool because instead of saying, well, if you want
this filter and you want this and you want I'd say,
here it is, here's the pool comes with everything. You
don't need anything else, and basically write it up. And
(08:31):
I would. Where other salespeople would sell two three pools
a day because they didn't even have time to talk
to other customers, I would sell seventeen. Oh wow, so there,
because I would just line people up packages you said, literally,
line people up. Oh okay, whoever wants a pool, come
(08:53):
over here, you know, and pitch them all. Here's what
we got. Pick size comes.
Speaker 2 (09:01):
With everything, you know, unbelievable.
Speaker 1 (09:03):
So to your point, yeah, and to your point about convenience,
who does it really well is the Chinese restaurants at lunch.
They have the number one, the number two, the number three,
those are all packages.
Speaker 2 (09:19):
It's all of it.
Speaker 1 (09:20):
It's so simple, all of the number five. Okay, the
but on a pad and that's it. You know, talk
about simplicity. To your point about packages, they are simple,
right yeah.
Speaker 3 (09:32):
And I'm the same way a Chinese restaurants. Sometimes I'll
buy the combo just because of the perceived value, even
though I don't want everything in it, or like Japanese
restaurants for lunch, I love when they have the Beno
boxes and I may not want everything in it, but
it's like, Okay, that looks like a full meal and
I get a variety and I get everything.
Speaker 2 (09:51):
Right, unbelievable. Well, you're making me hungry.
Speaker 3 (09:54):
Yeah, I know me too.
Speaker 2 (09:58):
So uh.
Speaker 1 (09:58):
You know, we went over something that the benefits of
packaging and bundling today.
Speaker 2 (10:03):
But there's a lot more information again well.
Speaker 3 (10:07):
And I definitely want them to get it because I've
dealt with you for quite a while and you could
be immense help to anybody listening to this or anybody
they know. And you know, we touched the surface with
this subject. There's so much more to know. How do
people get more information about this? How do they discover
(10:27):
your your secret book interview?
Speaker 2 (10:33):
Yes, promotion?
Speaker 3 (10:36):
How do they reach out to you? Michael?
Speaker 1 (10:38):
So they go to next step CFO dot net. They
can download our book for free, but also they can
ask for a book interview, which will which I promised
you'll learn business and financial strategies that your competition isn't doing.
Just go to NEXTSTEPCFO dot Net, forward slash contact, fill
out the contact for, put in the message sent or
(10:58):
book and the message box booking TB or you just
want to talk and talk about CFO services or strategic invitation,
how we go about it, be happy to talk to
you about that as well.
Speaker 3 (11:11):
Well. Once again, a wealth of information, wealth of help
for business owners and even people that are just working
at a company. Like I was saying before, I wasn't
the owner, I was a salesperson. This information given to
me at that point in time would be immenseful, like
(11:34):
so helpful and again made me make a lot of
money because of it. This type of information. So everybody
reach out to Michael. He's amazing. Next step CFO. They
will get you to the next step and the next level.
And thank you once again Michael for being on the
Adventures Pipeman positively Pipeman's.
Speaker 2 (11:56):
Second thank you for having me tea.
Speaker 3 (11:59):
Thank you you're listening to the Adventures of Pipemin on
w for c u I Radio.