What does dealing with price push back have to do with landing important sales?
Everything.
I’m sure you’re aware that your competitor may not be under the same expectation to protect gross profit margin you are.
No doubt, pressures to make sales on low-price are not a phenomenon likely to vanish anytime soon.
If you don’t know the fundamentals of switching customers from a price discussion to one about value and articulating a compelling value proposition, expect to lose sales to cheaper competitors.
To help you focus on simple steps to further strengthen your ability to handle price resistance effectively, here are four tips.
Tip #1: Don’t Brush It Aside
You can’t trivialize a price difference.
- Your customer feels definite pressure to get the best price possible.
- Your customer may be getting pressure for lower prices from their customers.
- Dismissing their concerns will only intensify the resistance.
Dealing with questions or concerns about price in a capable way is crucial. Don’t take it personally, either.
Price resistance is not a rejection of you, your company or your product. It may be a final negotiation tactic.
Perhaps, the buyer has decided to award you the sale? Only thing left is to see if there’s any more room to move your price down.
Tip #2: Give Customers Valid Business Reasons
Objections occur when you attempt to sell value without offering sufficient, valid reasons for your value.
- Focus on increasing your customer’s perceived value.
- Engage them with questions that uncover any misperceptions or false assumptions about your product or services.
- Clear up any misinformation with helpful evidence that proves value.
- Give valid reasons for how you provide the best value for their
About 70% of the job of winning sales is influencing customers
to view your value in the right light.
To convince a customer to embrace your offer over what they’re currently doing, the perceived value of your solution must exceed what they perceive they get currently.
There will be resistance if they have established loyalty or trust with another supplier.
Tip #3: Avoid Being Affected by Negativity
Prepare your mindset before the sales meeting with some reminders:
- Customers bring out your product’s downfalls or shortcomings because they resist making change to their status quo.
- Initially, customers will lump your company in with competitors, claiming they get the very same things you provide, but cheaper.
- Customers want the assurance they can trust you.
- It takes time to build trust.
- Lacking an urgency to make a decision is common in the early stages of relationship building.
- Buyers are trying to negotiate your price to its lowest level and placing skepticism on your value is tactically smart.
- It’s common for new customers to brand down your product when they don’t fully appreciate your company’s reputation.
Don’t let negativity get under your skin. Remain relaxed and composed.
Tip #4: Run the Numbers
Never assume the customer recognizes the obvious advantages of your solution. Always do the necessary work to justify your value in light of their business issues.
Running the numbers (or doing your homework) for an account increases the strength of your positioning. These steps can pay off in making more sales:
- Use discovery questions to identify your customer’s value drivers.
- Use your numbers to quantify the positive difference your product or services can have on their desired outcomes.
- Connect the dots from your numbers to the customer’s value drivers.
- Believe in your product one thousand percent. If there’s a mist of doubt in your mind about value, it will lead to a fog of doubt in your customer’s.
Running the numbers to quantify the difference your solution makes, is a chance to make a positive impression on buyers and set your value apart from competitors.