Something to consider

It’s All About Price…or is it?

Of course prospects and customers want to talk about the price of something. Whether it is a service, product or even a perceived commodity customer will want to play “let’s make a deal”. Why do they want to play that game…because we’ve taught them to! Every time a prospect/customer says “what else can you do for me” or “can you lower the price” and we accommodate them they learn that pushing back on price is a game they can play with us. Instead, we need to take price off the table, at least for the initial discussion. Try saying “I understand that price is a consideration but I would like to come back to price”. That gives you time to identify needs and develop the best solution for the customer which may take the pressure off of price. At the very minimum if the price is lowered there must be a perceived change that justifies the drop in price. Perhaps they pay in 10 days instead of 30, perhaps you change the packaging to a stock box rather than the custom box you originally included.

Many sales people feel that customer will only buy on price. Think about that, people pay more for items all the time that they perceive a value in. After all, we can get a cheaper meal places but elect to sometimes go to expensive restaurants. We choose to buy fancy cars when a bare bones minimum vehicle would serve. You need to identify “wants” not just “needs”. I need a car….I want a car with a sunroof that is a hatchback and is red.

In addition you can take the pressure off by price by talking about the cost of ownership not just the price. If you were shopping for a shirt and saw a $25 deal but it was a fabric that needed dry cleaning and was a color that was not frequently worn the price might be low but the cost of ownership would be high. Instead a $50 top that was a neutral color that could be worn with many things and was hand washable would have a higher price but a lower cost of ownership. Have that discussion with your customer instead.