Many salespeople believe that they lose sales because of price. But in reality, most of the time, it is not the price of a product that loses a sales but the salesperson’s fear of the price.
Remember, the only thing as contagious as enthusiasm is fear. If a salesperson is apprehensive about discussing price, or if a salesperson fears that a customers will say ‘It costs too much” then that fear will rub off on to the customers because fear is contagious.
A pro-clo understands that price will only be a problem when the customer feels that the product or service is not worth the risk, the asking price. In a nutshell, price is only a problem when someone doesn’t want something badly enough. You have to create that want, you have to build value into your product so that the customer is willing to pay the price to buy it.
In the initial stages of any sale, the customer’s fear of losing will be greater than his expectation of gaining. In other words, the customer will be more frightened about spending or losing his money than he will be excited about owning the product and benefiting form it. The pro-clo throughout his entire presentation builds value into his product by demonstrating how his product will satisfy the customer’s needs and how the customer will benefit from owning. So at the end of the presentation, when it’s time to talk money, the customer’s fear losing will no longer be greater than his expectation of gaining. In fact the complete opposite will occur. This is building value.
In his book supercharge your selling. Nigel Henzell Thomas suggests.
When a prospect or customer says you’re too expensive, ask whether he wants the cheapest solution or the best value for money.
I have found that they always opt for the best value for money. A pro-clo simply outweighs price with benefits and gibes the customer what he perceives is the best value for money.
Understand on more thing: it is never the price that stops people from buying (if they are sold), it’s always the terms of purchase.
Let me explain: few people can afford to buy the house of their dreams for cash. What they afford is the mortgage the terms of purchase. When the price is $100.000 the customers can’t afford it (cash), but when the mortgage works out a $500 a month they can. However, they will only buy the house if they are sold on it and if paying $500 a month is worth owning it.
If you build value into your product and you have the facility to negotiate terms of purchase, price will never be a problem.
But there are some customers who, even when sold will still till you that it’s expensive or it costs too much these customers want to buy be are trying to see if your price is flexible first. If price starts to become an which is best used when it is read aloud, so have it typed on to a piece of card.( Incidentally, this quotation is well over a hundred years old)
It’s not wise to pay too much but it’s worse to pay too little. When you pay too much, you lose a little money, but that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do.
The common law of business prohibits you from paying a little and receiving a lot- it can’t be done. If you deal with the lowest bidder it would be as well to add something for the risk you run and if you can do that then you can afford to pay for something better.
John Ruskin, 1819-1900
Remember: if you build value into your product and you have the facility to negotiate terms of purchases, price will never be a problem.