The idea is simple.
If something is priced right, then there is no need for a discount and you can close the most sales.
The problem is what is the right price? Let’s make this even more confusing by adding the fact that two people can look at the same thing and feel the right price is not the same price.
Customers and salespeople alike will always see things differently.
For the salesperson, the “right price” can mean whatever it takes to close the sale. Trying to determine the “right price” is far more difficult than people realize.
When salespeople say our goal is to price right, I’m sorry, but that is as vague as “world peace.” It simply doesn’t exist. Yes the “right price” exists for a can of peas or a fast-food meal, but let’s put that aside and deal with the big stuff — the stuff you’re out there selling every day.
The right price takes on different values depending on where the salesperson is in relationship to making their quarterly numbers. The right price is something different to the operations manager struggling to keep enough sales in the system to keep the production lines running. The right price is a moving target to marketing when they’re watching competitors all around them picking off their customers with an array of pricing options.
The reason I’m writing about this is simple — there is no such thing as the “right price.” The sooner the salesperson realizes it doesn’t exist, the sooner they will begin to realize the “right price” is determined by what the customer is willing to pay.
What this means is it’s your job as the salesperson to allow the customer to fully understand what the right price is. If the customer feels the right price is less than what you normally sell at, then it should tell you the customer has yet to understand the value of your product or service.
You can argue I’m simplifying things too much, but that is the point I’m trying to make.
The “right price” is an over-hyped concept that distracts you more than equips you.
Focus on understanding your customer’s needs and helping them see how the value of what you offer meets those needs.
Copyright 2013, Mark Hunter “The Sales Hunter.” Sales Motivation Blog.