When you cut price
In today’s market place everyone is looking for a DEAL. So many in an organization think price is such large factor in the decision making process. You hear about the economy, how people’s money is tight, how we are recovering from a recession, how a competitor has less expensive prices, or a whole plethora of personal pity parties.
Everyone in today’s business world is learning better and better negotiating techniques. In Dave Ramsey’s program, Financial Peace University, he teaches how much money is saved by haggling with everyone to get a lower price.
So what do you do when someone asks you to lower your price? Don’t try to learn some canned response that you can rely on to overcome their objection. The most important thing you need to realize is you haven’t created enough value as a sales representative. Somewhere along the process there was a breakdown, you got lazy and didn’t ask enough questions, you assumed too much about their needs or the customer mislead you because they felt things were moving too fast. As a professional, you must separate yourself from your competitors and tailor your product or service for the client you are currently working for.
When you bend on price to get the sale, you lose credibility with the customer. I’ve cut my price before and they still didn’t buy from me. Sometimes they are simply testing you, to see if you’ll stand behind what you say. When you cut your price, it comes from the profit margins. Profits aren’t evil. They are there to ensure you job, benefits, training, retirement, and growth. A great leader and salesman, named Scott, responds by saying,
“I customized a service to fit your needs, which included the investment, and if I could have given you a better price……. I would have. If I wouldn’t have given you the best price up front, you wouldn’t trust me as much as you do now, would you?”
Know your price.
Stand behind it.
Create so much value for your customer that when you tell them the price, they say, “Oh, is that all?”
Don’t cheapen yourself by cheapening your price.