You know your products are priced right. But what should you or your sales representatives do if the customer disagrees?
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.
Here are three tips on how to persuade the buyer that the price is, indeed, right.
• 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. Price becomes a non-issue 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.
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.
This article was originally published in the March 2006 issue of Entrepreneur Philippines.