Although many salespeople feel their competitors or suppliers cause any price problems they experience, our company has found that there are many other factors from our own beliefs, to the words we use to timing and more that actually cause our price challenges.
In this article, I wanted to raise an important question. Do Mercedes salespeople stay up all night worrying that people will discover they can buy a Kia for about 20% of the cost of a Mercedes? I mean those Kia people are selling for 80% less! Man if that gets out, no one will buy a Mercedes right?
I am sure you will agree that statement is wrong. Mercedes salespeople are well aware of the value they provide that is far different from Kia, Ford or used vehicles that cost far less. I think you will find these salespeople are very confident and that they sleep like babies.
If you had a competitor that sold for 80% less than you would you be as confident? You should be, because studies show that no matter what customers tell you, only 14% buy due to price alone and not value. You don’t buy for price and neither do your customers. Take your home as an example. Do you live in the absolute cheapest home you could buy or rent in your town, despite condition, neighborhood safety, size, schools etc? I doubt it.
Do you have on the cheapest shoes you could have purchased at the lowest cost thrift shop in your county even if they are not your size or don’t match? Again, probably not. You do not buy exclusively for price, but for value and so do your customers.
You are probably wondering why price objections come up so much if price doesn’t matter. The answer is that consumers know it is the easiest one to use. Our training for our clients covers many objections and many ways to deal with them but price is definitely a consumer favorite. It is the objection many salespeople actually agree with (deep down inside) and the one salespeople give up with the easiest.
Let’s look at one way we may cause our own problems with price…the words we use.
Have you ever said something like “the list price is”. As soon as we say that, we are telling the customer in code that we don’t really expect that price. If we say the “list price is”, it implies that there is another (lower) price. Try not using that phrase and you will see an immediate difference in how much price objection you face.
Another foot shooting phrase might be “we just got a new price list and of course, everything is going up with the price of oil.” The problem with this phrase is that it is depressing. It makes the customer feel that the price you are going to quote is high. No one wants to pay a high price. Now, imagine if you said, “I have very good news. Everything we talked about today is only $XXXXX.XX.” It’s not a big difference but I hope you agree that the feeling imparted is much better. It’s more optimistic. It’s a price there is more of a chance the client will want to latch onto.
Timing is important too. As we say in other articles and videos, Never Tell Them The Price Until They Fall In Love With The Product. Telling the price too early is very bad. Timing is extremely important and so is the control it takes to reveal the price on your schedule.
This article is designed just to make you realize that having competitors with low prices is not affecting you any more than it affects those Mercedes salespeople. There are lots of techniques that will make a difference and they are certainly worth spending the time and effort to master.
Few objections come up as regularly as price objections. How much training have you had from experts on how to turn those objections into sales? We hope you agree it will be worth the effort.
Sales training article discusses how to deal with price objections and how Mercedes salespeople are not concerned about competitors. It teaches how to sell for more and technqiues required to close more and overcome price objections. For more information on our DVD visit http://www.pricedoesntmatter.com or www.salesandmanagementsolutions.com