If you don’t care about premium pricing, you can stop listening right now. This is for bank executives who want to figure out how to command premium pricing despite the too-common assumption that banking is a commodity. Therefore, they cannot command premium pricing—or, at best, maybe 25 basis points more on the loan side.
You’ve got a problem…
Your sales staff was lulled to sleep during the good times and those that are left, now years later, well, they don’t have the skills or the confidence to go snap up quality accounts and get them at a rate you can be proud of.
They sit in the office trapped, as if in a box of their own making, believing that it’s not possible to rapidly grow their portfolio with quality credits at premium pricing…that it’s not possible to win an account without matching rates.
Now, I’m going to show how good banks,
Why would you buy a Volvo? Safety. Why would you drive a Mercedes? The prestige. Why would you buy a BMW? The driving experience. Last question. Why would you drive a Pinto? Price.
Now for the reality. Volvo is not the safest car. For many years, Saab actually had a better safety record. Mercedes is only considered a prestige car in the United States. In other countries, is a taxi. It has been marketed here differently. And the BMW, well, I’ve driven one of those—it IS the ultimate driving experience.
In the first three examples,