pricingToo many times salespeople wind up selling their competitor’s products or services without even realizing they’re doing it.

How it many times happens is when the customer asks the salesperson what their price is early on in the sales presentation, the salesperson feels the obligation to tell the customer what their prices are.

Big mistake!

First, no matter how much a salesperson may want to help a customer, price should never be shared until a firm understanding of the needs and benefits are on the table.

What happens when the salesperson shares their price before the needs and benefits have been clearly discussed is the customer takes what they heard and suddenly compares it to something else.  In many cases, they compare it to a similar product or service they might be considering.

Unfortunately, the customer doesn’t have a clear understanding, so they begin to frame their decision around what they do know — and that’s price. 

If you’re a low-cost producer, then you might say, “Fine… I’ll get the business!” The problem is if you’re a low-cost producer, there’s no way you’ll keep the business, because somebody will come along and undercut you.

If you’re a typical salesperson, what you’ll find yourself in is a box where the customer is now about to make their buying decision based on price. In most cases, that will mean it’s somebody else who will get the order.  Congratulations!  Credit your fine job of wanting to answer the customer’s question quickly with causing you to lose any hope of closing that sale.

Next time the customer asks you for your price early on, merely tell them how you want to better understand first what they are looking for.   Your objective is to explore and uncover the customer’s needs and wants — and then share how what you have to offer can benefit them.  That’s the order you do things… explore, uncover and share.

Don’t think you can share and then uncover and explore. It just doesn’t work.

Copyright 2013, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.

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