Thoughtful Thursdays – Your customer says the competition is offering a lower price
You are having a good day, sales are good and you are looking forward to the coming weekend. A call comes in from one of your best customers and your contact tells you that your competitor has offered a lower price. What do you do?
Today’s sales thought is about dealing with this common situation.
It is not a reason to panic. In many cases it is a courtesy being extended by your customer to let you know about competitive activity. You certainly do not want to ignore the information, but also need to find out a few things before setting your course of action. You want to determine is the reasons for the your competitors actions.
- What is the price difference?
- Is it a short term price due to:
- Inventory clearance
- Old material
- Introductory pricing
- Are purchase volumes the same?
In my experience, your customer will want to continue buying from you and is giving you the opportunity to respond to a competitive situation.
It may be that you will have to make a concession, but before you do, be sure of the facts. This kind of message from your customer does not always mean they want to re-negotiate price.
Consider your competitive advantage that has kept the business in your favour. There is often more to this advantage than price alone. Be sure that you reinforce this to your customer.
There will always be a lower price out there. Be mindful that it does not necessarily need to be you who is offering it.
Good selling,
Richard
Have a question about sales? Contact Sakanashi and Associates Inc. and I will respond.
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