"Your price is too high". If you are frequently hearing this response, you MUST review your sales process in a hurry. "Your price is too high" is a typical response to those who have been all too quick to offer up a price. You quote your price, the customer doesn't like it and it's over. Where can you go at this point other than "OK how much do you want to pay"? It then becomes a price negotiation and you have set the stage for all other future dealings. The question you want to ask yourself is "How much do I want to sell my product for"? Establish what you are willing to comfortably ask for your product and build your value proposition around it. As you plan and prepare for your proposal presentation, ask yourself this question:
What is the perceived value of my offering to this customer and can I successfully justify how its value and my service exceed my asking price?
You will be asked to reduce your price; it is human nature to negotiate. That said, here are some things to consider when presenting as they relate to your ability to present, justify and ultimately combat the inevitable request for price reduction.
- Remember, you should NEVER quote price until you have established the value behind your product and service. If you jump in too quickly with your price, you can go back and try to justify but the likelihood of success is minimal.
- Decide in advance what your solution is worth. Before you can sell anyone, you need to be absolutely convinced that what you are offering is worth the asking price. If you are not convinced yourself, your presentation will not be convincing.
- If you imply that your price is negotiable, it will always be negotiable. Present your proposal with conviction and confidence that you are providing the customer with the best possible pricing..........the first time.
- How have you differentiated yourself from your competitor? You must position yourself differently. Just because the competition sells on price does not mean that you have to do the same. Find a way to show the customer that you are different, that you add value to the relationship. The customer must view you as a partner in business. Once you establish that position and you truly represent value to the customer, pricing will become secondary and you will win....... on your price.
- Position your self as a professional. The way you dress, the way you project yourself, the way you answer their questions, your overall approach to doing business will determine their approach to doing business with you.
There are 2 different types of buyers when it comes to price. There are those that say they want the best price but if you ask, you will find that they truly care about what they are getting and simply want the best value and most appropriate product for their business. This is where you can really excel in terms of selling to their needs and keeping them cost appropriate.
Then there are those that simply buy the cheapest, lowest quality product on the market. These are the real price buyers. Recognize them and be prepared to leave them for your competitor.
Remember, what you win on price, you will lose on price. There is always an aggressive competitor on the outside looking in just waiting to beat your price. Build value in the relationship, charge a fair price for your product and understand that the customer will buy from you and continue to buy from you if they consider you as a source of information and not just a supplier. Establish that type of relationship and you will continue to enjoy the business..................and at your price.