<p>Price is the easiest way to select who to buy from. It is an immediate, quantitative measurement of the buyer's monetary participation in the deal.</p>
<p>But a sales transaction is never only about price, is it?</p>
<p>How is the service after the order? How well does the product hold up over time? Does it have to be replaced, or can it be re-used? What is the VALUE of the purchase?</p>
<p>If you can sell your prospect on the value of your service, then price doesn't matter. </p>
<p><strong>Establish value first, before price enters the conversation.</strong> Describe what you do, and how it differs from the competition, before quoting a rate. Find out exactly what they need, and how best to serve them, before quoting a rate. Find out what is important to them in their purchasing decision before quoting a rate.</p>
<p>If possible, close the deal before quoting a rate.</p>
<p>Don't get me wrong, price is important. In a turbulent economy, price is a heavier factor than it was before. But if price is the only way you differ from your competition, I don't care what business you are in, you are in the wrong one.</p>
<p>(Unless, of course, you are a multinational comglomerate whose business model relies on getting the cheapest product and selling for the cheapest price. But even then, you should still follow the next few tips.)</p>
<p><strong>Handle all price objections by redirecting to value.</strong><br />Whenever someone says "Your price is too high," that does not mean, "No."</p>
<p>It means, "I want to buy, but I am not sure the price is worth it."</p>
<p>Describe what they get for their price. Will they save money over the long run? Will they get a better value than if they went with a competitor? What bells and whistles have you not covered yet?</p>
<p><strong>Don't be the cheap guy.</strong></p>
<p>Sometimes, you can make a sale by undercutting on price. But the clients that only go with the rock-bottom lowest prices, well, they're cheap. They will not spend as much money with you as your best clients will, and they could end up being the biggest headaches as well.</p>
<p>Example: if your new client went with you because you're five cents cheaper, how much extra work will they want you to do without paying for it? How many extra hours are spent on that cheap client, just because you wanted to make the sale?</p>
<p>Too many. Cater to your best clients, and to those who know the value of what you do sell, not what you dont charge.</p>
<p>Here's a fun exercise: Make a list of your best clients, and I bet you probably won't find a penny pincher on the list who went with you just because you were the lowest bid.</p>
<p><strong>Filter out the cheap-seekers</strong></p>
<p>If your prospect only wants the lowest price, find out at the outset so you don't have to waste your time. Personally, I ask everyone two questions up front: why they called me about car insurance, and why they are looking around. This is my filter system.</p>
<p><strong>1: Why are you looking around?</strong></p>
<p>Price is often a motivating factor, but so is service and ease of contact. I focus the conversation around value they are missing, and value I can offer.</p>
<p><strong>2: What is important to you in an insurance company?</strong></p>
<p>If they respond with any value items we have discussed, or even some we have not discussed, I know I have a good prospect. If they say "Price, and only price," I tell them frankly, "I'm not the right guy."</p>
<p>Somebody is always going to be a little bit cheaper than you are. (On the front end, and on the back end.) If your client will deal with the cheapest service in order to get the cheapest price, don't waste your time! You will make less money and have more problems with them, especially if they cannot afford to make their payments on time.</p>
<p>Find people you want to work with, who will pay you what you're worth.</p>
<p> </p>
2009-03-05T19:53:49Z
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the-problem-with-price
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2009-03-05T23:10:09Z
2009-03-05T23:10:09Z
Why you should never hear 'Your price is too high' again.
The Problem with Price
1
2009-03-05T23:10:09Z