Thoughtful Thursdays – Your price is too high…
…or is it?
I don’t mind hearing this from a prospect because it tells me the negotiating phase of the sales process has begun or is still in play.
How you respond is very important. Less successful sales people accept this verdict, turn tail and leave – don’t you be that person.
If you have successfully sold the idea of becoming a viable supplier, it is now your challenge to determine and close the ‘price gap’ your prospect has told you exists.
Think about what you need to know before responding:
- How far out of line is your price?
- Can it be quantified in dollars?
- If you quote an hourly rate, taking fewer hours to complete the job can cost less than a lower rate that takes more time to finish.
- Are you absolutely sure you are on a level playing field with your competitor?
- Have you considered freight costs, perhaps you are quoting a delivered price and your competitor has quoted freight extra. Is your packaging the same?
- Is price really the issue?
- Does the prospect understand the value you bring? Recall that value is the sum of price and benefit.
In my experience there will be times when you just cannot compete, you are not going to will all the battles.
All things being equal, you should not be off the mark to any great degree. Today’s thought is to be sure that you have considered all factors that can affect your price, and not to have any questions unanswered. Adopting this approach will close more sales than you lose.
Good selling
Richard
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