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Proactive strategies to minimize price objections
Written by: Bob HooeyArticle Overview: Your price is too high! Compared to what, I ask in return? There are many ways to offset the challenge some clients bring in regard to your price. Often, the problem is a lack of value as perceived by the client and that is something we can deal with as professional sales people.
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Proactive strategies to minimize price objections
How do you compete when you know you aren’t the least expensive in your area? How do you compete in an increasingly competitive market globally? How do you compete with a big box store opening in your neighborhood? Here are some areas that will help you in this regard.
Strategic Value Analysis: Taking the time to find out a bit about these four areas will help you build a strong foundation and relationship to better service your customers. Better relationships will take the pressure of the price factor in the buying decision. The more you know, the better you can apply that knowledge in serving those who need what you provide.
• Market Analysis
• Competitive Analysis
• Self-analysis
• Customer analysis
Positioning Strategies - to create barriers: Some of the more successful companies have carved out a position as the quality leader in their field. This emphasis on ‘quality or value’ moves the evaluation process away from price comparisons.
Outsmart the competition: Use your brains and look for ways to better 'service' your customers. Find ways to provide services or value-added products that your competition doesn’t.
Use all your resources: Being lean and mean in using your resources can help you keep your overhead in line and keep your pricing competitive. Using your resources fully allows you to better serve as well.
Decide on all organizational needs: Taking time to streamline your operation. Keep it simple! This will help your staff provide the best service possible. It also allows your customers to see firsthand your commitment to giving them value for their dollar.
Work to generate end-user support: If you are in the position of being a supplier – your customers are really your customers’ customers. How can you help your customers by working to reach and teach the end users? Become a drawing point for your customers.
Value-added Checklist (10 minimum - go for 20)
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Bundling: How about making what you offer more valuable by combining products or services to allow your customers lots of options. What types of bundles can you offer?
Proactive probing: Take time to find out what moves your customers? What keeps them up at night? Ask questions and respond to what you learn, by adapting or changing your business. This is one way of keeping what you offer current, valuable and viable.
Reinforce value: Everything you do should be focused on reinforcing the value in what you offer. What is the true value of what you offer? Warranty, service, selection, delivery, options?
Sell intangibles: Often the true value of what you sell is based on things that can’t be shown or proven until needed, as above. Do you have a better warranty? Do you offer better terms? Do you offer a better selection or stocking? Do you offer expert advice or consulting? Do you offer delivery and installation? Let them know!
Presentation ideas: When you get an opportunity to present or share about your business or products – I’d suggest looking for ways to incorporate the following areas. You can be a great spokesman if you do. How can you…?
• Demonstrate earnings
• Cut their costs
• Go for agreement to product first
• Carefully choose your words
• Use proper sales terms instead of jargon
• Sandwich the price - focus on value (good, better, best!)
• Price with benefits summary
• Cost as a 'mere' fraction
• Minimize the cost-to-own
• Analogize
• Use testimonials where ever possible
• Think and talk 'long-term'
• Present in its best light
The above critical ‘impact’ areas are essential to being a value-based, sales and service business. Look for ways to build them into your business. If you have strong competition, even more so! Using some of these tools and techniques can allow you to selectively compete and excel.
The effort will pay off – BIG TIME!
© Copyright 2006 Bob ‘Idea Man’ Hooey www.ideaman.net Visit: www.SecretSellingTips.com for more ideas like this one.
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Re: Hiring introverts vs. extroverts
- [quote="Evan":37xmbjab]It's generally hard to be a good salesperson if you are an introvert.[/quote:37xmbjab]
Evan,
I was thinking about the same right? Then I was put in charge of training sales teams and found out interesting traits among the successful ones.
Often times, the extroverts talk "too much" and kill a sale. They attempt to overcome every objection by giving answers while NOT understanding they are not hearing true objections.
When objections are answered but the buyers aren't proceeding for transaction, they're not telling you the real objection.
When that happens, there is a psychological shift occurs that the more you appear needy to sell as a salesperon, the less attractive your sales team becomes because people like to be facilitated instead of being sold.
So the hybrid of both characteristics will serve best in sales.
The tone of your voice, posture, attitude, all work well... and you want to look confident, mature, calm and not attached to the end result of the transaction.
It's like saying.... Mr. Prospect, I certainly would love to welcome you as a customer, but even if you don't proceed, it wouldn't be my loss... but saying this through your tone of voice, look on your face and everything else instead of in words.
And some extroverts ones have hard time expressing these messages through unspoken communications, seeking approval for their answers to customers objections by speaking too much.
Interesting isn't it?
Warmest Regards,
Takuya
Re: Matching competitors prices - beware
- While I agree that getting into a price war should be avoided if possible... on rare occasions, it's not a bad idea to match someone's price (or even beat it) if you're doing it "one time" to land a new customer.
For instance, I was recently looking for the best price on a [u:2rhwa2wg]specific[/u:2rhwa2wg] flight to NY and a customer service rep from Flight Centre ended up taking zero commission to help me book my flight. In fact, she even beat the price by $5 in the hopes of creating brand loyalty for the future.
Re: need pricing help please
- I think you could be selling yourself short.
Plus you may be focused on the wrong things when it comes to pricing your products.
What will your buyers be able to do or get as a result of your product?
How much would that be worth to them?
Buyers will gladly pay over $100 for a one page report because it tells them exactly what to do to overcome a specific difficult to solve problem. Even when that information can be found free elsewhere.
I know it's hard not to compare your eBook to a physical book. Yet, that may not be a fair comparison.
Another thing to consider is the perceived value when a product that sounds great comes with a very low price. Some potential buyers will doubt the value of your product because the price seems way too low for the result it promises.
There's a quick and easy way for you to discover the right price though. Open a Google Adwords account ($5) and then set-up a multi-variant test for different price points. If you have a decent amount of traffic you'll quickly discover the best price.
Re: Invest in Real Estate or Stocks?
- I think that it is a question of whether you are taking an educated risk or just plain gambling. If a person does not understand the stock market and still takes the risk of investing there then that is gambling you do need to know what you are doing to minimize the risks involved.
MichelleJ
Re: How to Get Your Business Funded
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VCs are businesses, not sharks. they make their decisions based on profitability and have the obligation to minimize risk.
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