- “Your price is too high.”
- “Is that your best price?”
- “What kind of deal can you give me if I buy from you instead of XYZ Company?”
These are among the most dreaded words a person in sales can hear. A typical response from an average salesperson may be: “Is there anything else that may convince you to buy this product?” Other sales professionals might respond with a “planned” script or dialogue, but more often, most stammer, offering a weak response. In either case, without a value proposition, more than often they may lose the sale all together or if the sale is made, at the expense of their profit margin.
And yet some professionals think that in order to get the sale, the best strategy is hardball negotiation with an ultimatum of “take it or leave it…that’s my best offer”. Not only may you lose the sale, but you may lose the prospect for any future sales opportunities. So what are the secrets to close the sale and NOT cut your price?
The high performing sales person understands the potentially eternal value of unlimited future sales from a customer. How you respond to this question may be the key to building a loyal client for life if you craft an engaging value proposition instead of trying to win a one off sale.
The premise is this: When you build the value that comes from your customer’s perspective, you are on the right path to more and consistent sales. Offering a compelling value proposition goes far beyond just a good price, it aims to solve additional issues that customers may be enduring.
Pricing is Complicated!
As a salesperson, understand that the concept of price is complex. There’s the price that’s written out on the tag, and then there’s the price that accounts for every aspect of savings and benefit—which essentially says, “Your life will be better off or worse off when you buy a certain product.” This contributes to the overall VALUE…and therein lies the secret. To be a successful salesperson, learn to sell value…as the prospect defines it! It is up to the sales professional to effectively present the value components.
The practice of selling value over price results in benefits to your bottom line, and at the same time, produces satisfied and loyal customers! If you are looking for endless referrals and a ton of raving fans that do the “selling” for you this is the way to go. Differentiation is your best practice.
Apparent Price vs. Cost over Time Strategy:
One of the most successful strategies to avoid cutting your price is to master the contrast between apparent price and costs over time. If your product or service has long term values, you may elaborate with positive points that include the durability of your product and the proven value from purchasing a longer lasting, more dependable product.
You may choose to point out how reducing orders will reduce shipping costs, ordering activities and save down time with a longer lasting durability for a slight difference in pricing. If time and down time is your customer’s pain points, this will be an effective response.
For more strategies, visit: www.DonHutson.com. Click here to discover more about Don Hutson’s new book Selling Value: Key Principles of Value-Based Selling