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It’s Not All About Price

Written by: Marshall W. Northcott

Article Overview: Are you or your sales staff encountering an excessive number of price objections? Need to learn how to overcome or eliminate pricing objections? Read on...

It’s Not All About Price

Some people don't think before they open their mouths and speak. I'm frequently faced with sales people who complain to me that their business is all about price. It frustrates me and I know from speaking with many clients that it annoys them to no end to hear this kind of talk from sales staff. That statement in almost all instances is absolutely asinine! Usually I respond by saying if that were true then why doesn't your company fire all the sales people to eliminate the overhead, pay minimum wage staff to consistently research market pricing, set up an incredible web site with the lowest advertised price, effectively communicate this to the customer base and promise that they always guarantee the lowest price?

Then I will ask them if their company asks for a premium on some or all of their products and services. Undoubtedly the answer will be yes. To this I ask if they have customers who buy from them now and again the response is again yes! My reply, "Well I thought you said that all customers care about is price?" Obviously that isn't the case or no one would be buying from your company. I will also ask them if there are associates in their company who are experiencing success and again the response is a resounding yes! So what's different about them? Do they have all the naïve, ill-informed, brainless customers? Of course not!

How well do you really understand your business, the customer base and the product or services that you market? It is the responsibility of a Sales Professional to educate and deliver value to their customers. Anybody can get the business (give it away) when low price is the only consideration. Of course most intelligent decision makers want to get the best value when making a purchase but that is only one piece of the puzzle. Sales Professionals must apply sales skills and intellect in order to have and maintain success.

In most industries there are variables that set one vendor apart from another. Decision makers usually consider various criteria when making decisions. The criteria can vary widely from individual purchase to purchase and time related circumstances. Here are a few examples of variables that will typically be considered by buyers when making purchasing decisions:

• Most industries offer good, better and best items, therefore choices in grade and quality are usually considerations.
• Trust in the sales representative and supplier.
• A solid working relationship between vendor and supplier.
• Frequency of contact and level of service.
• Friendly and cooperative customer service and administrative support reduce hassles and client stress.
• Logistics, warehousing, product inventory and selection provide options to give the customer more control.
• General ease of doing business with the vendor or user friendliness with technical products makes you a more appealing alternative.
• Flexibility vs. rigid policies, procedures and business practices.
• Dependability of all departments and individuals servicing the account.
• Either your ability or the ability of the product and/or service to solve a specific problem, address a need or needs, fill a gap or help them to overcome a challenge or shortcoming compared with the current situation.
• Your communication and presentation skill level and ability to elevate awareness though influence, persuasion, education, information and justification.

Customers are going to jam you on price, that is a reality of the sales profession. They want the lowest price so they can either minimize expenditures or be more profitable. That matters as long as they don't have to sacrifice too much. Next time you point the finger at price just remember that there are three fingers pointing back at you and they are asking you to step up to the plate and be an accountable professional. The sort of whining described above, is unacceptable and it needs to be silenced! Get to the source of what really matters to the customer. Be profit minded and learn to deliver value to your clients, that is what your employer expects of you.

"You can either make money, or you can make excuses, but you can't make both."

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Article Tags: Building Value, Dealing with Price Objections, Minimizing Price Objections, Objection Handling, Sales Training, SPIN Selling



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