Build More Value, Don’t Drop Prices

Every business gets complaints, some justified and some not and price is one of the most common ones.  If you ever have someone complain about your prices then you need to fix your offer.  You need to build more value but don’t drop your prices.  I was told by one of my mentors that a business should never compete on prices and you should never apologize for them.  He said that selling high ticket items taught him to build more value in his presentations.  That is why you shouldn’t drop your prices to compete and that should be the last thing you do.

It takes a lot of time being persuasive and work earning a customer’s trust.  When you get ready to close your customer asks for a better deal leaving you with the decision of doing business for nothing or not doing business.   This happens more often than you think and new salespeople will give in to the customer’s demands.  You don’t want to lose future business and at the same time you want your deals to make you money; what do you do?

You’ll always find people who shop for the lowest price but in the end they want value.  Price never should be the issue and you don’t want your business to compete on prices.  When you build the value of your offer to exceed the price then you have removed the price objection.  We want to keep showing value with our conversations and the benefits they offer.

 

How Do You Build More Value?

When you have a competitively priced product and your customer complains about price don’t be in a hurry to offer them a discount.  There are some techniques
that will help you position your offer so you can make the sale.

  1. Price Anchoring-

    Position your product next to a more expensive one and you will build more value.  This makes the price of your product seem reasonable.  Start your demonstration with the higher priced product so they will be happy when you show them the lower priced products.  You aren’t trying to sell the higher product. Putting your product next to one that offers the same results at a higher price makes your price seem small and you will sell more.

  2. Change the way people think.

    A “value prism” is a copywriting technique that can help you raise the perception of your product.  The idea is to spotlight your product’s craftsmanship by talking about everything that went into creating it.  This makes the price seem more reasonable when they see the steps and the care taken in creating the product.  You simply build more value by demonstrating the unseen value.

  3.   Know what you can and can’t do!

    There is a point in every deal that you just can’t live with and you have to know when to walk away.  You want to avoid these types of situations by concentrating on the terms, and the benefits of your offer.  Instead of focusing on price look for common ground and other options you have that will build more value into the deal.  You increase your chance of closing the sale the more options you can add to the offer.   Some things that will help you are payment options, bundling, discounts for buying more, and your services.  The more of options you have to build more value the more success you will have.

  4. Compare Using Daily and Monthly Price

    This is a common strategy many businesses take advantage of.   You don’t actually charge a daily fee or monthly fee but you build more value.  If for the small cost of two dollars a day you could get your meals for a month instead of paying ten dollars per day at a fast food place.  It seems a small price to pay for the value.  You aren’t changing your price you are just rewording the cost into smaller units.  Instead of saying for just two dollars a day compare it to the price of a latte or some other unnecessary item.

  5. Use Social Proof

    Everyone else is doing it why shouldn’t you?  Social proof helps you highlight what your customers say about your product and services.  Having proof in the form of testimonies and ratings helps to make your price appear normal.  When your price appears normal and it seems everyone is okay with it then it reduces the price objection.

  6. Build More Value with Your Customer Service

    Your customer doesn’t know everything about your business and what you can do for them.  Once you explained the features and benefits of your product you can build value with your services.  It’s easy to get people to see the value of your service by focusing on the personal touches.  As you build a relationship with your customer you can listen and find out their needs.  You can then show them how your customer service will help them and get referrals and testimonies too.

Conviction and Confidence

You’ve heard you should assume the sale and in closing you don’t want to show a lack of conviction.  You have to believe you are the best person to help your customer or she won’t believe you.  Instead of dropping your prices show them all of the ways you add value to your offer.  Confidence is the most important trait you can have when making a sale.  Without confidence you will not be able to show your products value and you won’t make many sales.  If you aren’t confident and don’t have the conviction that you are the best person to help them then you won’t make any sales.

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By:  Moraima Buonafede

References:

https://hbr.org/1988/11/negotiating-with-a-customer-you-cant-afford-to-lose

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