Sales are slow, the competition has never been tougher, and to top it off, customers are looking for a reason to buy.
Problem is the reason customers are looking is because they want a low price. Sound familiar? Can you relate?
Here are 9 reasons why selling on a low price does not work:
1. The discounted price you gave to the customer is now the price they expect every time they buy from you.
2. What is to prevent your competition from lowering their price to equal yours? If they do, you may very well wind up selling the same amount but making a whole lot less.
3. Once you offer a discount to a customer to close a sale, you will think offering a discount is the best way to handle every roadblock you run into with a customer.
4. Customers establish the value they’re going to receive based on the price they pay. The lower the price, the lower their expectations and their perception of the value of what you offer.
5. Low prices attract cheap customers, who will haggle with you about everything.
6. You’re making less money, which means you have fewer resources to help you grow your business. If your company isn’t making money, you’re not going to stay in business for long.
7. If you offer a discount to some customers, what does that say about your integrity and commitment to all of the other customers you sold at full price?
8. Selling on a low price is not selling; it’s order taking. Your objective as a salesperson is to help uncover needs you can help the customer solve.
9. You want customers buying not based on a price point but on the benefits or outcomes they’re going to receive from buying.
There they are: 9 reasons why selling on low price is simply not a good strategy. Over the coming weeks, I’ll be expanding on each one of these 9 reasons.
Copyright 2014, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.