In a recent post on http://www.thesalesblog.com, Anthony Iannarino (@iannarino) highlights a price trap that many salespeople fall into. The temptation to go low on price may be connected to your belief that a lower price equals an easier win.
The fact is that price, while important, rarely makes it into the top criteria that drive purchasing decisions.
Anthony is right…think about what is conveyed about the value of your offer vs. others’ when you go low. Consider what a low price says about you as a sales professional when you represent a quality organization with a quality product or service.
So, how do you avoid falling into this price trap?
- Recognize that price conveys the impression of value. Don’t be so quick to give up that impression.
- Sell yourself on the value you bring to your customer. Believing you are worth more than others to a client puts you in a position of confidence and power when it’s time to talk price.
- Realize that highlighting price invites negotiation — maybe not a full-on discussion of terms, but a moment that requires skill and preparation.
- Optimize your client touch points by doing less talking and more learning about what matters to them.
- Convey value in words and ways that are meaningful to your client. While your company’s offer may include unique features, leverage your customer knowledge by connecting those features to customer priorities and outcomes. This reinforces value.
One of my early sales mentors was fond of saying that the factor that wins you a deal is the same one that will lose it. When you lead with a low price, you attract price shoppers. And trying to build a business with these customers will fail for one of two reasons: 1-they will eventually leave you for an even lower price, or 2-at some point you will be forced to raise prices (refer back to reason #1) or terminate the contract because it’s unprofitable.
Selling value is not easy. Value is what you choose in the company you work for, and what customers want in the partners they choose. I’ll gladly accept the challenge of selling high over gaining a reputation as the cheap alternative!