Q. More often than not my prospective customer says my product is “too expensive” and I find this really difficult to overcome because we are more expensive than our competitors. My boss won’t allow us to drop our prices so I’m losing loads of deals as a result, any ideas?
A. This is extremely common in sales and it’s all about adding value as opposed to dropping your price.
Think about it, when the prospect says “too expensive” what does that actually mean? To me there are four meanings available; firstly they can’t afford it, secondly they don’t see the value, thirdly they have seen it cheaper elsewhere or finally they are negotiating.
Therefore, my first question to your prospective customer when they say “you are too expensive” would be, “what are you comparing us against?”
For arguments sake let’s imagine your product is £1,000 and your competitor is £700, so your prospective customer is comparing you to that competitor. You need to find out what the prospective customer gets for £700, get them to list out everything that’s included in that price. Your job now is to sell all the additional benefits you bring to the table for only £300 more. SELL THE DIFFERENCE!
You are no longer talking about £1,000, you are simply selling yourselves for £300. It’s very rare that both yours and your competitors’ offerings are identical, so you should be able to find would provide at least three examples of additional benefits that you can offer over and above your competition. I can give you one for starters – YOU. I always say to my prospective customers, “There is no Tony Morris being offered and I will be your dedicated consultant, at your beck and call whenever you need me”.
Remember you can offer a lot more when negotiating rather than just drop your price, if you are unsure how then please look out for our column next week where I will be discussing some great ideas on how to negotiate effectively. Until then have your best sales day ever!