Said it. Got that out of the way. Want to read it again? You do not need the lowest price to make sales!
The best part about this claim? Most all of you know it’s true. Most all of you have made sales within the last 18 to 24 months where you know for sure you did not have the lowest price. Refreshing isn’t it?
This is not to say your prospects & customers don’t want the lowest price.
This is not to say your competition will not race to the bottom to offer the lowest price.
This is only to say you don’t need the lowest price to make sales. Period.
Let’s talk about your prospects & customers. It’s their job to get the best value for their money. This may “look like” getting the lowest price to you. This may “look like” getting the lowest price to them – especially if there is no clear difference between the value you are providing compared to your competition. And here we have one of the oldest problems in the history of selling – “My prospect wants a lower price, ABC Company will sell it for 10, we’re at 12.”
Now, the salesperson enters into a negotiation with her own company for a lower price. Makes zero sense. If you were not in sales & you were reading this blog, you might shake your head & have to re-read that one a few times. It makes zero sense.
It makes zero sense to professional salespeople that understand the difference between price & cost. Between price & value.
To a lessor salesperson it makes complete sense. To a lessor salesperson it sounds like this: “How am I going to win this business if our price is higher than ABC Company?” Or, “I can’t sell at these prices.” Or, “There is no way companies will pay 12 for our product when they can get it for 1o from our competitors.” Or the best one of all … “How are we going to grow business unless we lower our prices?”
You see, a lessor salesperson says these things to himself so often that he starts to believe them. These claims become his reality. He becomes convinced that sales are made solely on price & races to the bottom along with his competition.
Solution? Sell the value. That’s not the first time you’ve heard that. Sell the value. Sell the total cost of the solution, not the price. The total cost is lower in the long run.
It’s the correct solution. Problem is, it’s tough to do for people that have been selling features & benefits their entire lives.
The way to stop selling on price is to stop leading with price. Stop leading with features & benefits. Stop leading with “what” we do. Stop leading with your product or service.
The way to stop selling on price is to start leading with the problem. Lead with the issue that your prospect or customer has. When you tie a number ($) to that problem (when they share how much the problem is costing them) you are on the right path. It’s not about “what you do”. Now, it’s about why they need you – your value.
Your ability to discuss their problem goes a long way in letting them know that you “get them”. When a prospect understands that you “get them” they are much more likely to buy from you – it’s a comfort & trust thing.
Your competition? They may “lower the price.” Cutting into their margins. Let them do that. K-Mart found out what happened when you do that. There will always be someone willing to go lower (& if they have a better distribution system… Target … you may be on the outside looking in. Worry about yourselves – let your competition worry about themselves.
#1 takeaway here: Stop negotiating with your own company for a lower price. Start having business discussions about how much money problems are costing your customers. Sell the value.
Or, send me better salespeople.