In relationship selling, we want to keep our clients happy. We don’t want to lose long-term relationships to a competitor who’s undercutting our prices. So, to keep our clients, we always need to win on pricing, right? Wrong!
Statistics show that 81% of customers are willing to pay more for a better experience. That means less than a fifth of customers think “the lowest price” is more important than anything else.
If your sales cycle is focused on price, you’re probably setting yourself up to lose. Don’t be lazy and fall into this trap! Instead, you need to:
- Define what sets your company above the rest.
- Sell the quality of your product or service, not price.
- Focus on clients who care about more than the lowest price.
- Stop blaming your company for its pricing strategy.
- Consider a fixed-price model.
Price shouldn’t be a dealbreaker.
Why do people go to Walmart? Because they want to get the best price on their groceries. The customer experience isn’t always amazing, but the low prices are all that really matter.
But people don’t go to the Apple Store to get the lowest price on cellphones. And people don’t book the Ritz-Carlton to save on nightly room rates!
Apple sells superior quality. Ritz-Carlton sells superior service. Both brands focus on delivering an excellent customer experience—and customers are willing to pay a premium price for a better experience.
Define what sets your company above the rest.
What is your product or service able to offer beyond just a low price? Maybe you have a stellar support team, higher-quality components, or unparalleled service provider options. If your competitors are beating you on price, do your research! Chances are, they’re leaving out something that your company can provide.
Sell on quality & service, not price.
Once you’ve defined what sets you apart, you can stop selling based on price. And remember to always lead with value propositions based on quality and service. If you set an appointment based on price promises, your close will come down to price—no matter what else you try!
You’re not only losing revenue and cutting into profit to make price-based deals happen—you’re giving up on an opportunity to sell your product’s real benefits or your company’s value to the client.
Focus on clients who care about more than the lowest price.
For every client who only cares about price, there are four more out there who will pay more for quality. So stop focusing on those customers who say “the best price” is most important to them!
If you’re getting nowhere with a client who only cares about getting the lowest price, stop. Focus your attention on finding customers who will value what your company provides. They’ll be more profitable, more appreciative, and more loyal than your price-focused clients.
There are plenty of clients out there, and it’s not worth wasting time on ones who don’t want to pay for quality.
Stop blaming your company for its price strategy.
Playing the blame game is a lame excuse. When you’re throwing your company under the bus for having higher prices, you’re just passing the blame for your lack of sales skills. Sorry, but it’s true!
When you do your research, understand the true selling points of your company, and effectively communicate the benefits of your service to clients, you’ll be able to close deals without having to play the blame game.
Consider a fixed-price model.
Now that you’re selling based on the qualities of your product, why not take price completely out of the negotiation process? We have implemented a fixed pricing structure in our own business and recommended it for many of our clients.
A fixed-price model lets your clients know that you believe in your service—and you won’t play favorites. They don’t have to worry about getting the best deal and can focus on the benefits your company offers. Plus, you won’t be tempted to cut into your profit margin just to close a deal.
Until next time—go sell some stuff!