Why Lower Prices Hurt Sales and Value

Salespeople who operate on the premise that lower prices will result in more sales leave money on the table and set themselves up to be perceived as adding less value than their competition.

It is time, especially if you sell complex services in a competitive environment, to let go of the temptation to reduce your price to close an important deal. Instead, follow the advice of value selling training experts with a new premise: people believe that they get what they pay for and they treat you the way that you behave.

So rather than focus on your price, focus on the value to them, their boss and their business. If your price is higher than your competition, shift your customers’ thinking toward understanding how your solution is superior and worth the higher cost. In fact, you should walk them through evaluating value in terms of the business results that your service offers and the risk of going with an inferior alternative. Put a dollar number on what they save through more efficient production systems, for instance. It will undoubtedly be significantly higher than what they will pay for your solution. Bottom line…the value far outweighs the price and you should bag the sale.

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