Get Weekly Updates
Grow Your Business
The price is right
Jul 20, 2012
Your sales reps may run up against price objections – and it's especially difficult to compete against larger companies selling similar products or services at a discount. For advice on winning the price wars, we asked John Costigan, founder of John Costigan Companies, a sales consulting firm in Cary, North Carolina, for his insights:
• Build the pain. It's the salesperson's job to identify a prospect's "pain" and offer solutions. In other words, reps need to get prospects emotional about their business problems. When a rep can offer a real solution, price issues melt away. Says Costigan, "Price is everything when selling logically, and it's nothing when selling emotionally."
• Keep the leverage. Reps shouldn't make concessions without a commitment. If the customer wants a lower price, have your rep ask, "If I can, what happens next?" If the prospect has no answer, the rep probably wouldn't have landed the deal anyway. If the prospect does answer, the rep should find out exactly what needs to happen to move forward.
• Never match price. Costigan believes buyers make decisions for three reasons: the salesperson, the company, and the product – in that order. If your company offers a better service and product, reps shouldn't need to match price.
Looking for a new business? Find opportunities here
The best place to look for suppliers and business partners
Know where to place your investments
Looking for ways to fund your business? Find them here
Find the right suppliers and clients for business equipment and other products
Earn money from your properties. Post your advertisement here
Anything and everything about franchising
Expand your network here
Get the buzz from fellow entrepreneurs
Let’s solve your business woes
Your guide through the start-up maze
Swap tips and get advice on juggling your business journals