Why would you want to cut your price?
Just because your customer is looking for you to reduce your price does not mean you need to do it!
Lowering your price is never a “one-time” event. It’s permanent. The money you give up is gone for good and, worse yet, you’ve established in the customer’s mind what the price should be going forward.
When the customer is asking for a lower price, keep in mind what they’re really saying. They are saying the price you’re looking for does not match the value they expect to receive.
Customers will pay any price. That’s right! They will pay any price, as long as they feel the value they’re going to receive is worth it.
Ask yourself this question next time you make a reservation on an airline: “Is there a cheaper way?” Sure there is! You could always walk, but the time and effort is too great, thus you’ll pay more because of the time and effort you will save by flying.
Next time a customer asks for a lower price, ask them to clarify what it is they really want — what is the outcome and/or benefit they want to achieve. I would hope you know what this is before you quote a price, but I’m amazed at the number of times salespeople tell me they don’t know.
Your objective is to create value.
Show them via the questions you ask how they will receive the value they’re looking for.
I’ll use another travel example. If the clothing, possessions or other content you intend to take on your flight aren’t worth anything, you’ll be satisfied with any type of bag or suitcase. On the other hand, if what you intend to take is valuable, you will use a more expensive bag or suitcase.
It all comes down to value — the value for which the customer is looking.
Next time your customer asks for a discount, know your objective is to not reduce the price but to increase the value the customer will receive from paying the full amount you’re asking.
Copyright 2015, Mark Hunter “The Sales Hunter.” Sales Motivation Blog. Mark Hunter is the author of High-Profit Selling: Win the Sale Without Compromising on Price.