The argument is simple: Lower your price and you’ll do more business.
Sure, it might be simple, but it’s also stupid.
Lowering your price to get more business means what you’re getting is more cheap customers. Stop and ask yourself this question, “Which would I rather have? Cheap customers who are always harping on me about price or full-price customers who see the value in what I sell?”
Too many salespeople find themselves in a box that somehow they think the only way they can get out is by lowering their price. I say get a different box, because it’s your customers that put you in the box to begin with.
Customers who beat you up on price are the same ones who beat you up on everything else.
I hate to say it, but there is a segment of people out there who think low-price is the ticket to everything. If you have customers or prospects like this, then the thing you need to do is to let them go.
I know there are some of you out there who are saying, “But if I let these customers go, I won’t have any customers at all!” If that’s the case, then you better get started now finding better customers.
The process starts with where you’re spending your prospecting time and the types of customers you’re going after. A key part of the prospecting phase is to make sure you’re spending time with customers who understand the value you offer.
The best way to know this is by asking them.
Don’t hesitate to validate the prospect’s perspective on pricing early on. The last thing you want to be doing is spend time on prospects who in the end don’t or won’t accept and appreciate the value of what you’re selling.
This is one reason why I place such a strong emphasis on referrals, because if I have customers who appreciate the value I bring, then they will refer to me others like them. For this very reason I say that if you have a low-price customer who nags you on price, don’t ask them for referrals.
Who is on your prospect list?
Low-price scavengers or full-value customers?
Don’t delay in going after the right prospects and getting better customers, because lowering your price is not a sustainable strategy.
Copyright 2012, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.