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What You Can Learn From Knowing How To Sell A Refrigerator To An Eskimo

By Gary Goranson

          You’ve no doubt heard the phrase, “He’s such a good salesman, he could sell a refrigerator to an Eskimo.”  The implication is, of course, that since Eskimos live under frigid Arctic conditions, they have no need for a refrigerator and that it would take someone with extraordinary powers of persuasion to sell them such an appliance.  If you agree with this assumption, think again!

           Imagine for a moment that you worked for a company that sold refrigerators and you were assigned the mission of creating a strategy to sell your product to Canada’s “Inuit” and Alaska’s “Yupik" (the relevant names referring  to Eskimos in these respective countries). 

           Your first reaction might be, “Are you crazy?  These people live in igloos.  They have no electricity.  It’s already cold in their habitat, why would they need a refrigerator?” 

           First of all, igloo is the Eskimo word for “house.”  Mainly through the use of cartoons, people have long thought that Eskimos live in rounded icehouses.  This was true originally, but it's not true now.  Nowadays, Eskimos live in wood, stone, and even cement buildings.  

          Secondly, while many of them may not be served by conventional power plants, most of them have access to electricity by way of individual or communal generators. 

           And while many of them do live in a climate that can reach -70 Celsius (95 below Fahrenheit) during the harshest winter months, that in itself is good reason to own a refrigerator:  to keep food from freezing.  Conversely, during the short summer season of mid July to the end of August, temperatures can get up to 12 Celsius (54 degrees Fahrenheit) and food can quickly spoil at those temperatures.  As a matter of fact, inland areas of the north can exceed 80 degrees Fahrenheit in the heat of the summer.  Few people know that Fairbanks, Alaska has the greatest swing in temperatures anywhere in North America, from 100 Fahrenheit in the summer to 100 below zero Fahrenheit in the winter.

           Okay, but can native Eskimos afford to buy a refrigerator?  While unemployment among this aboriginal population is about the same as for the native North American Indian, about three quarters of adult men are employed.  Due primarily to harsh winter conditions and limited economic opportunities in rural  areas, employment among the Eskimo population tends to be seasonal.  However, between employment and government subsidies, the average income is above the poverty level in the continental United States (and even the poorest families in the lower 48 own a refrigerator). 

 So . . . How Do You Sell A Refrigerator To An Eskimo?

           You begin by knowing something about your prospective customer, just as you should when you go about trying to establish a clientele for your house cleaning business.   

          Here’s what we know:

  • Eskimos live in housing similar to those in more temperate climates, not in rounded icehouses;

  • Most of them have  access to electricity to run household appliances
  • There is a need (and therefore a market) for refrigerators to keep food from freezing in the dead of winter and from rotting in the warmer months
  • While unemployment among the Eskimo population is high, more than three quarters of the male population is employed (the glass is ¾ full, not ¼ empty!)

Based on what we know about this prospective refrigerator customer, you could now go about more confidently creating your marketing plan to fulfill your mission.

 “But, wait a minute,” you might say.  “If that’s the case, don’t all the Eskimos already own a refrigerator?”

Good point.  But, although every household in America owns a refrigerator, the industry continues to sell over 8 million units annually in this country.  In spite of their reliability, all appliances eventually need replacing.  In addition, new families are formed in the artic, just like everywhere else in the world, thereby adding to the potential customer base.

 You also know from your “fact finding” efforts that the income of the native Eskimo population has lower economic means.  So, although refrigerators can cost from $400 to $3,000, your product offering probably won’t include today’s most advanced (and expensive) models, some of which include LCD and plasma televisions in the door.  You’ll select products that offer the basic solutions necessary to store fresh produce and frozen foods.

 You’ll target your marketing activities to the roughly 75% of the population that can afford to buy your product and, of course, avoid those few isolated communities which don’t have access to electricity (which are few and far between today).

 Knowing that many, if not most, of your target market may not currently be in the market for your product, you will utilize marketing methods and messages that will create awareness for your brand so that when they are in the market, your product will have what is called in the advertising industry, a strong “mind share”.  You will use marketing materials and a message substantial enough to catch the attention of those who are currently in the market.

And THAT is how you sell refrigerators to Eskimos.

So How Does This Analogy Apply To Your Business? 

  1. Before you can sell your service, know who your target market is.  Just as it would be a waste of time spending your money and effort trying to sell refrigerators to Eskimos who don’t have electricity or the disposable income to afford one, so you must identify the best potential households who want, need and can afford the services you offer.  Indiscriminate marketing activities are costly and wasteful – not to mention frustrating.  It’s important to choose the neighborhoods in your market area with the highest potential for hiring a cleaning service – and avoid wasting time, money and effort by blanketing the entire town or city.

  2. Know what your prospective clients want.  Not enough business owners make enough of an effort to determine their prospect’s “hot button.”  Trying to sell a top of the line refrigerator to an Eskimo who merely wants to keep food from freezing and spoiling and can only afford a basic model is a waste of time.  But you can only determine this with certainty at the time of sale by asking what the customer is looking for.  Likewise with your service.  Ask questions:
    1. Has the client used a cleaning service before, and if so, what did they like and not like about the service?  This will help to identify and address specific concerns they have.  This should be the first question you ask during any quotation interview.
    2. What specific things are most important to them about hiring a cleaning service?  Respond to this feedback FIRST, before explaining all the other benefits of using your service (many of which they might not even have thought about).
    3. If the client has a particular budget in mind but was looking for a weekly cleaning service, sell “down” by offering a biweekly cleaning service instead.  Or, if certain rooms are hardly ever used (such as a spare bedroom, for example), offer to do those rooms only on a rotational basis.  Once they become a client, if they’re happy and feel the need for more frequent cleaning, it’s easy to step them up.
  3. Understand that most prospects aren’t looking to hire you today.  Just as most Eskimos are likely to already own a refrigerator, so many of your target customers will already be using a cleaning service.  You’re likely to get a small percentage of these people responding to your advertising during any given campaign.  Maybe your brochure arrived at their door at the very time they finally had put up with a tardy cleaning service for the last time – and they respond immediately,  just to quote one example.  And, of course, you will also reach those people who have finally decided it’s time to hire a cleaning service.  But the vast majority of those clients your advertising reaches aren’t ready right now.  That’s why a good looking, well  written, substantial advertising brochure is so important; many will hang on to it and contact you when they’re ready.  This is also why strong, constant advertising activities are important:  you’re creating “brand awareness” and “share of mind” and building future business.

So, can you sell a refrigerator to an Eskimo?  Darn right!  If you understand the analogy and what we’ve discussed above, you’ll find that you can get all the clients you can handle for your residential cleaning business, too.  And you’ll see the long term efforts of your advertising efforts pay off in spades.

 

 

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