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If your customer is beating you up over the price of your service or products, aren’t they really saying that they see no difference in what you offer over the competition? When a customer objects to price, they are usually saying, “Show me why I should pay more for your product or service than from someone else.” Often this is the starting point for the customer. They have nothing to compare and this is the easiest way to get the sales process rolling. Others may just be more price sensitive and feel it is their duty to get a lower price. Most customers will pay more for a product or service if they feel that they are getting a good value. |
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Here are some things to consider in dealing with price:
- Know your customer. How have they purchased in the past? Use this to prepare your price strategy. If it’s a new customer that you don’t have a history with, is there someone else that can give you this information?
- Use an established price list-when possible. We have a tendency to accept what is in writing more than verbal. Established price guidelines let the buyer the know that they are being treated fairly.
- Offer pricing options. This puts the customer in control. Limit the options to three as not to confuse the customer.
- Break Down the price. Into smaller pricing options where appropriate. For instance if you are selling a piece of equipment that is $50k, perhaps you could break the price into delivery, installation, building a prototype, machining, etc.
- Quantify the results. Show the customer that by using your product or service it will reduce costs, avoid costs, or allow them to realize more profit. Don’t just tell them this. Work out a formula to calculate the savings.
- Focus on value. Never talk about price without associating it to a benefit for the customer.
- Always give sound reasons for why your price is what it is. The customer may not have any idea how you establish pricing. They just want to know that they are being treated fairly.
- Compare your products/services with more expensive articles. You may ask, “Compared with what?”
- Never Cut Your Price. Never cut your price without making it conditional, or making the customer give something in return. If you do, it will diminish the value for the customer.
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