Nathan Hayes

Nathan Hayes is the Manager of Business Development for Red Tray and Editor of

Reps are welcome to contact him at 404.934.3535 or to send him an e-mail if you have questions about how Red Tray can benefit your accounts or with general comments about selling to ECPs.

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How Lexus Responds To Customers Who Try To ‘Make A Deal’

Posted on March 25, 2010
Filed Under Articles, Case Study |

What do you do when your accounts insist on getting deep discounts on your premium products?

You might take a page out of Lexus’ book. When someone shopping for a Lexus tries to bargain on price, the sales associate will do one of two things:

1- Walk the customer over to the Toyota show room.

2 - Hand the customer a Toyota sales associate’s business card.

In my view this is a brilliant sales tactic for several reasons.

First, it challenges the shopper’s pride. After all, they’re looking at a luxury car.  Why aren’t they willing to pay luxury prices?

And, it also preserves Lexus’s identity as luxury item and a status symbol. Being a car buff, I know that when I see a Bentley on 5th Avenue in New York City that $250,000 just drove by. The same goes for Lexus (not at a quarter of a million dollars, of course).

Finally, it’s great to be Toyota too. For one thing, there’s a much bigger market for your products than for the Lexus-level optical products. And, value is a much easier sell these days than premium or luxury.

But, if you sell luxury frames or top-of-the-line lenses, remember that your price point is an important part of your brand.

Whether you’re selling ‘Lexus’ or ‘Toyota’, how do you handle customers who constantly try to bargain down your prices? Post a comment below or email me.

Disclaimer: The information and opinions contained on this site are for discussion purposes only and are NOT intended to serve as legal, accounting or investment advice. ©2010 Red Tray. All rights reserved. Not to be reproduced without written permission of the author.


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