Thoughtful Thursdays – The price vs value sales barrier
Yes, price is important and I do not know anyone who does not seek the highest value for the lowest price. Even when the price appears to be excessive, the buyer must perceive the value to be worth that price.
Today’s thought is about working with the price vs value sales barrier.
One of the most common sales challenges is the lower priced competitor. Sales training helps us quantify value and justify selling prices to our customers. Our competitors take the same training and our customers are taught purchasing strategies and tactics that keep us on our toes. With all that seems to be working against us from making the sale without giving the farm away, it can be a bit daunting at times.
Professional buyers do not want you to lose money, or put you out of business. They are looking for the best solution at the most reasonable price. If the price they are seeking from you does not meet your profit expectations, one of two things must happen. Either you walk away, or adjust your profit expectations. A tough decision either way, bit one that must be made. It puts the value vs price sales barrier into your court.
- If you are not the low cost supplier it may be necessary to work with lower margins
- You may be better positioned to offer value in areas that will offset a lower product price such as delivery times or holding inventory
- Strong business relationships may not prevent losing a sale, but will probably afford the opportunity for you to have a last look
- Sales history can be a powerful ally when quantifying value
Value vs price is a sales barrier all sales professionals face, and our customers make sure that we deliver.
Be mindful that value is sometimes underestimated and taken for granted. It is beneficial to remind your customer of that value from time to time.
There will always be someone who comes in at a lower price. It does not mean that you have to match it to retain the business or close a new sale.
God selling,
Richard
Have a question about sales? Contact Sakanashi and Associates Inc. and I will respond.
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