You’re telling me your competitors are selling at a lower price. So what!
You can’t get an order because your competitors don’t know how to make a profit. What’s new!
Your Customers only buy on price! Oh Really!
There’s not much you can do about your competitors but are you sure your customers only buy on price?
Is this your Price Only Customer?
I would guess they drive the most basic Ford Pickup truck. Nothing fancy for our price conscious customer.
They live in the cheapest house on the block in an older neighborhood. It may not have all the luxuries they wanted or needed but it was a bargain.
They buy their shoes (on sale) from Pay-Less Shoe Store and would never consider buying a shirt with one of those fancy emblems on the pocket.
Am I right?
Certainly not!
So, maybe your customers don’t always buy on price. Are you with me so far?
Don’t mistake your customers negotiation tactics as only buying on price.
Sure your customers like the lowest price they can get along with the most value they can obtain from you.
Can you blame them?
It is my contention (belief) that only when all things are perceived as equal is price (possibly) the only factor.
(You can see that I have a hard time even saying that price is the only factor.)
How can all things be perceived as equal if you as a Professional Salesperson are always bringing your and your company’s value into the sales equation?
Have you ever walked into a store to buy something simply on price and ended up buying a better more expensive product and was happy to do so?
I would think most people would answer yes. I certainly have.
For me this happened this weekend. It was the result of a good salesperson asking questions and finding out my real needs and wants. Then helping me find the correct product (a 70mm-200mm zoom lens) to meet my needs, thus providing the best value not necessarily lowest price.
It was the salesperson’s knowledge and salesmanship that provided value for me not to buy only on lowest price. Without that salesperson’s help I would not have got what I needed. I would have only gotten a low price with regrets later.
As professional salespeople we must strongly believe that we are providing a value to our customers even when not having the lowest price. For this value we need to be compensated.
If you can create more value than your competitors, shouldn’t that greater value result in a greater price?
S. Anthony Iannarino, creator and writer of “The Sales Blog” writes:
“The role of a professional salesperson is to create so much value for their client that they can confidently capture part of that value for their company and themselves.” (How not to sell on Price: The Iannarino Principle)
Could it be the reason your customers don’t see the value you bring to the equation is “you don’t believe you bring value and deserve a higher price?”
You need to ask yourself:
- Are you providing enough value to overcome only buying on lowest price?
- More importantly, do your customers believe you are providing enough value to deserve a higher price?
I’m not saying price doesn’t matter, it does, but when you look closely it’s the value you bring and the perceived value of your products or services rather than lowest price that is the determining factor of what price your customers are willing to pay.
Look for more on this topic in the next couple of weeks.
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Thank you for taking the time to read this article.
Now let’s get out there and over-deliver!
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