At one time or another, we all have to do battle with a competitor’s price that is lower than anything we’ve ever seen before.
When confronted with a competitor’s price that is ridiculously low, the last thing you should do is think about lowering your price.
A price that is dirt cheap is many times simply that — dirt cheap.
Your objective is to not allow your price and the competitor’s price to be compared. If you allow the customer to compare the two prices, you lose!
First thing you need to do is to simply begin lining up what the competitor’s price is all about and what yours includes. This quick comparison may or may not identify differences, but again, don’t be concerned if you don’t find differences.
The big difference you have working for you is trust and confidence.
You’re sitting in front of the customer for a reason, because they trust you and have confidence in you. Ask yourself this question: “If the competitor had the same level of trust and confidence with the customer, do you think they would be offering that low of a price?” Most likely not!
Again, there is a potential advantage for you to demonstrate why the two prices can’t be compared.
Now, the third strategy works best when the order involves the delivery or use of something over a period of time. Question you need to raise with the customer is if the competitor’s price is that low, is there enough margin left in the deal for the competitor to make money and remain in business?
This is a very valid question!
What good is buying something from somebody if they can’t back up what they sold you? What good is buying something with a certain set of expectations, only to then get something less than that, all because there isn’t enough margin built into the sale to deliver on those expectations?
In summary, your objective is to not allow the two prices to be compared.
The simple reason is they’re not comparable. Your offer enables the buyer to receive the outcomes they’re looking for. The competitor’s price — due it’s significant difference — will likely not deliver toward the customer’s outcomes.
The competitor’s price is suspect. You need to realize that.
Copyright 2014, Mark Hunter “The Sales Hunter.” Sales Motivation Blog. Mark Hunter is the author of High-Profit Selling: Win the Sale Without Compromising on Price.
Mark I have your book and watch all you have to say, but in a commodity market place where you are selling exactly the same product it is very frustrating when your competition are blowing their brains out. Loyalty is good but it is getting harder to keep hold of them. Thanks for everything.