Why are you cutting your price?
Cutting your price due to the demands of the customer is stupid! Yes, you read it correctly: it is stupid. The only reason the customer demands you cut your price is because they don’t see enough value in what you’re selling.
The reason they don’t see more value is because you have raced the process forward, most likely because the customer asked about your price or gave some other buying signal. Selling fast is great, but selling fast can often be cheap and lousy.
How do you create more value?
Your goal is to create enough value to warrant the price you want. Take the time to ask questions, listen and build on what the customer says. The customer will gladly pay more once they see enough value. Don’t use the argument about how you have to cut your price, because if you don’t they’ll buy the same product/service from a competitor. That’s garbage!
Why are you selling what your competitor is selling? You are not your competitor. You’re better than your competitor. Stop thinking you need to sell at the same price as them.
Every customer comes into a buying situation with two preconceived notions. First, they think they know what they want. Second, they think they can get it for less money. These are two universal ideals.
Revealing a higher value
Your customer thinks they know what they want based off of their experience and knowledge. Apple recently rolled out a new iPhone. You may not have been in the market for a new phone expecting to only pay a certain price. However, after looking at the features of the new iPhone, you changed your mind about the value and suddenly justified in your own mind why paying more would be a smart move. What happened? You became more educated and found a new level of value. This is your job when you meet with a customer – to reveal a higher value. You do this by taking the time to ask questions and listen to them.
Customers do not have a price barrier; they only have a value barrier. It’s your job to help them get over the value barrier. Never view the value barrier as permanent, it’s always in motion based on the customer’s current needs.
Needs change, they always do, and it’s your job to capitalize on the customer’s changing needs.
Barriers can be broken
Again, you do this by spending time with them. Returning to the iPhone example, I just bought an iPhone 11, but I wasn’t expecting to pay as much as I did. My needs for a phone changed, though, and I paid the price. Yes, my needs could have been met in many other ways and for less money, but my value barrier was broken down and I bought it. I feel good about the purchase, because of the value it will give me.
Read more about 10 ways to bringing more value.
Never think for a moment you need to discount your price. Rather, always think about how to increase the value of what you’re offering your customer. When you are working to create value for the customer, remember:
The value you create is in the customer’s mind, not yours.
What you think is valuable, your customer may think is worthless. We all value different things. Let your customer ultimately decide what is valuable to them. Trust me, they will tell you, if you let them do the talking.
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Copyright 2020, Mark Hunter “The Sales Hunter” Sales Motivation Blog. Mark Hunter is the author of High-Profit Prospecting: Powerful Strategies to Find the Best Leads and Drive Breakthrough Sales Result