3 Value Selling Do’s and Don’ts When You Get Pricing Pressure

There comes a time in almost every sale when the customer challenges or complains about price. It is often at this point that inexperienced salespeople crumble and surrender to price pressure. But your solutions and your sales people do not need to get squeezed this way. What you need to counter this pressure is a good dose of quality, customized and targeted value selling training.

When you understand why the customer puts on the pressure and how to handle it, you won’t succumb to offering unnecessary discounts that will erode your brand and profit margin; nor will you be tempted to walk off in an insulted huff. Instead you will have the sales tools and skills to continue to work with the customer to mutually agree upon the true value of your solution. As a result, you will have an entirely different kind of sales discussion and sales outcome.

Here, in a nutshell, are what NOT to do when you encounter price pressure from your customer:

1. Don’t negotiate when a customer tells you they can get the same product at a lower price. First of all, they may be bluffing. But even if not, you should acknowledge that there are many different prices and alternatives out there. If the client can find similar value at a lower price, they should take it.  Your challenge will be to clearly articulate why the value you are offering is different (better, faster or cheaper) compared to the available alternatives. 
   
2. Don’t allow yourself to get drawn into a piece-by-piece breakdown of your pricing structure. It won’t help. Your fees should be based upon the tangible value your solution is providing in the eyes of the client.  Assuming that your initial pricing makes sense, your fees are your fees…period.  If the client wants to spend less, then reduce the scope to meet their budget.  Just make sure that you decrease expectations accordingly.
   
3. Don’t prematurely abandon the opportunity simply because the customer asked the “price” question. Haven’t you asked similar pricing questions when you were buying a house, car or other services? It is common.  It is human nature for many.  And it does not necessarily mean that your customer will be a difficult one or that you have lost the sale.

What TO do when you encounter price pressure from your customer?

1. Identify the Value.Clearly define with your client the value they are looking for compared to other business priorities and alternatives.
   
2. Link the Value.Define specifically how your unique and differentiated solution best helps the customer to succeed better than the competition.
   
3. Articulate the Value.Clearly communicate how your value-added solution addresses what matters most to them and their key stakeholders.

Selling your value in a way that aligns with the customer’s buying process and business goals enables you and your sales team to demand premium pricing, differentiate yourself from the competition and have a better close rate.  Customers will gladly pay more if they trust you can bring the value required to get them where they want to be.

Learn more at: http://www.lsaglobal.com/solution-selling-training