Most salespeople are under the false belief that the lower the price, the
better chance they have at making the sale. Nothing is further from the
The truth is, your customer will not buy at ANY price if you do not have
value established. When YOU truly believe in your product and YOU
truly believe that it is worth the price, then the customer will believe as
well and the price will become nothing more than a mere detail in the
There are a couple of mistakes you can avoid regarding the price of
your product and how you handle it.
Price is not a differentiator; do not pretend that it is. Price is the least
defensible differentiator in business and also the least effective.
Customers understand that a company cannot be the lowest priced and
still be the best. Yet companies still proclaim; 'We will beat all prices,'
and 'Dollar over invoice.' The only reason they are making those
claims is to try to beat their competition, but their competition is saying
the same thing. Therefore, if your company is doing the same thing as
the competition, how are you any different in the eyes of your customer?
Then there are those salespeople who automatically lower the price as
a means of trying to add value. When you lower the price as a means of
trying to 'add value' to the product or to your company, you are actually
doing the exact opposite. You are immediately telling the customer you
know the product is not worth what you are asking and you're willing to
lower the price.
Lowering the price in this manner, you create an uncomfortable selling
environment and set up the customer for a bad case of buyer's remorse.
If you were so willing to lower the price, what would you have done if
they pushed you harder? They will automatically assume you would
have gone even lower. This means that even though you gave them a
better price, they are more likely to feel like they got ripped off. Seems
counterproductive if you ask me.
In addition to buyer's remorse, when you start offering discounts, you
are telling the customer this is the type of purchase where haggling is
necessary. Therefore, by lowering your price as a means of adding
value, you actually are taking value away from the product and from
When you can eliminate using price as a differentiator and lowering
price as a means of adding value, you can focus on what is truly
valuable to the customer. By focusing on what the customer feels is truly
valuable, you will make price a mere detail in the transaction. The
obvious result will be higher margins and happier customers.
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