“The lower the price, the better chance I have at making the sale.” Ever say that to yourself? Of course you have. Was it the truth? Not even close. For some reason, you and other salespeople have been led to believe that the price of a product determines how well it will sell. There are many factors that influence a customer’s decision to buy, and price isn’t the most important. The problem is that you think it is. You’re so busy focusing on the price that you are forgetting about the value of your product and your customer, causing you to lose sales that could be yours!
Don’t be like every other salesperson.
What are you offering to your customers that your competitors aren’t? Don’t say “low prices!”
Price is the least effective differentiator in business.
Using claims like “We will beat all prices!” and “Dollar over invoice” won’t work because every other company says the same thing. All salespeople use those phrases because they think that it will set them apart from their competition. It won’t. Customers understand that a company cannot be the lowest priced and still be the best. So, stop echoing the words of your competition and try focusing on something that will actually get your customer’s attention.
Focus on the VALUE, not the price.
Customers want value. They want to feel confident in their purchase and know that they have bought something that was worth their money. Your customers will not buy at ANY price if you have not established value. YOU must believe in your product and believe that it is worth the price in order for your customer to believe it. You need to be honest with yourself when evaluating the integrity of your price. Do you really feel that your product is worth what you say it is, or do you only have a memorized script to defend your price? If you do not believe in the integrity of your price, it will be obvious to your customer. And if you don’t think your product is worth the price, why should they? Your sales presentation will be much stronger if it stems from a strong sales philosophy, in which you truly believe in the value of your company and product.
Your customers will sense that confidence and will be more willing to trust that the price of your product matches its worth. Knowing they are purchasing something of real value will make price nothing more than a mere detail in the transaction. Some salespeople make the horrible mistake of trying to add value by lowering the original price. This actually produces the opposite effect! By lowering the original price, you are showing your customer that your product is not really worth what you are asking for. Your action will make the customer assume that they are in a purchasing situation that requires haggling. This may create buyer’s remorse later. They may wonder what you would have done if they had pushed you harder to lower the price. Even though you offered your customer a lower price, they will probably feel ripped off. Your customer will be likely to question your business and will be less likely to buy from you in future.
Focus on the CUSTOMER, not the price.
Customers want solutions to their problems; price is only an issue because YOU make it one. By constantly drawing attention to the price of the product, you distract the customer from the value of your product and make them focus on the price. When YOU stop focusing on the price, your customer will be able to stop. Then, you will be able to discuss a more important point: how your company and products can help solve your customer’s problems. Giving your customer attention allows you to serve them better, and they will become happier, more loyal customers. The price of the product will be second to the personal attention and service you give; you will finally be focusing on what the customer finds truly valuable. The obvious result will be higher margins and happier customers.