Your prospects and clients want several things from you, as their supplier. They look for fair price, quality products & services, and timely service (though not necessarily in this order). Surveys suggest most consumers want timely and responsive service as first priority, quality products & services second and low prices third.
Three elements need to be understood in selling situations if you’re going to effectively deal with the challenge of price. First is price - which is what we, as consumers, pay for what we buy. Second is cost - which is what it costs us over time, what it costs us if we do it wrong, do it late or not at all. And then there’s perceived value, that’s the value we expect for the money we pay.
Most consumers tell salespeople they want low price when what they really want is low cost. It’s natural to want to take issue with this statement, but consider what you, as a consumer want. Do you want the cheapest, or do you want the product or service that best solves your problem, answers your need or fulfils your desire?
The truth is, most prospects or clients want their problems solved. They recognise they get what they pay for. They also know that the distaste of poor quality lasts far longer than the sweetness of the tantalisingly low price.
Buyers will object to price when they feel what they’re being asked to pay is higher than the value they perceive in the transaction. When an ineffective salesperson encounters price resistance, they usually lower the price.
Unfortunately, it’s not usually a price or cost issue at all rather one of the perceived value being too low.
What can you do to raise your prospects/client's notion of the relative value of what you’re selling?
A simple way is to find out what is troubling them most and then show them how your product or service will satisfy or overcome this need, want, or obstacle…or, even better, exceed their expectations of value. This way price will become secondary. Not cost, but price.
Real sales pros focus on value, that is, what the product or service does for the customer and not the price they’ll pay. They understand that while price is an issue, it’s usually not the most important one. Price will always seem high when perceived value is low.
Remember! Once you’ve set a pricing precedent with a client, you’ll live with it for the life of that relationship …and, of course, anyone they might refer you to.
There is no darkness but ignorance.