Fox & Company has pioneered the practice of "dollarization" in sales and marketing. Dollarization is based on the following theory:
People buy for one of two reasons: to feel good or to solve a problem. "Feel good" is measured in intangible values, such as the stylish fit of a sweater, the taste of a fine wine or the tight cornering of a new sports car. The solution to a problem represents either the avoidance of loss (e.g., reduced warranty costs) or the chance for gain (e.g., improved sales). Both the avoidance of loss and the chance for gain can be measured in dollars and cents, or "Dollarized."
Dollarizing is the act of assessing the differences between your products and competitive products and calculating the financial impact those differences have on your customer.
Dollarization has been successfully used to dollarize products ranging from a $1 million pharmaceutical centrifuge to a 2 cent o-ring. It has also been used to fend-off low-price competitors, to sharpen advertising claims, to set pricing and to segment customers. Whether you sell medical devices to hospitals, capital equipment to heavy industry, or pesticides to farmers, you will improve your sales, margins and marketing effectiveness by dollarizing your product's actual value.