CUSTOMER VS. SELLER ASYMMETRIES
When a customer is at an information and emotional disadvantage versus a seller, the seller can generally charge higher margins.
In the case of funeral sales, the customer is in an emotional disoriented state due to the recent death of a loved one. Generally, the customer wants to complete the transaction quickly rather than dwell over pricing.
- The customer does not have the tendency to do comparison shopping.
- Does not widely discuss with friends for recommendations.
- The transaction does not happen frequently.
- The customer is not easily able to evaluate the actual quality of the product relative to what is being paid.
From the point of view of the seller, it is advantageous to have the ability to determine:
- The customers ability to spend. This is possible to determine based on the occupation of the deceased.
- Combo, cross selling, or advance selling opportunities. This can lead to higher margin products
- The ideal design of the sales pitch - which products to emphasize to maximize sales.