Thoughtful Thursdays – Prices too high again?!
No matter how we try to shift the price conversation to value, it seems that eventually the conversation comes back to price. It makes you scratch your head sometimes.
Todays sales thought is about responding to the request for better pricing.
A customer would not be doing their job if they did not ask for better pricing. Having said that, it does not necessarily mean that you must comply. In may cases there is no reason to drop price.
Before you decide how to respond, consider all the facts. If you do not have all the facts, it is time to ask more questions.
- Is there really a competitive situation?
- Is the customer willing to provide proof that there is?
- Are the volumes larger than expected?
- What about timing?
- What is the dollar value that will be lost for a price drop?
- Is there another way to make this gap up?
- Are you prepared to walk away from the business?
- What is the customer giving you in return for a lower price. An acceptable answer is not “The order.”
Yes, there will be times when price consideration is the only answer. More often than not your customer is asking to see if there is another price point. Just be sure that you are not leaving anything on the table.
Have a question about sales? Contact Sakanashi and Associates Inc. and I will respond.
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