Handling Price

Description:

The handling of price during the sales process is an issue which can be challenging for sales people. Especially when your price is equal or higher than that of the competition. Or there is a financial crisis going on. Still it is quite possible to achieve the sale without too much difficulty. A lot depends on attitude: are you comfortable with the situation and can you handle it. If not, the buyer will smell blood. And you’re in trouble.

Often sales people sell on price. It’s so easy to give away a percentage to get the sale. The buyer knows this and will try the tactic. He deals daily with sales people!

Lack of knowledge of what the customer finds important can lead to loss of profit.

Tenders are the most challenging: in quite some tender cases the issuer of a tender just looks at the lowest price. Quality and service can be less important. When it concerns a tender it can be wise to try to influence the tender issuer or either wait for a next opportunity.

Examples:

• ·         Your price is to high
• ·         This price increase is not acceptable
• ·         What is my price
• ·         Your competitor has a better deal

Conditions for success:

Know from the beginning what your customer needs are. Know why their customers buy from them. Know what they find important about your service. Keep track of what you have done for them. Keep close contact with them during time and be there when they need you.

So, after listening to your customer and showing empathy make clear explain your price. Then coax your customer back to the points which he indicated were important to him. Then attempt to get him to understand. Then close the deal.

Important: these guidelines are in a nutshell. In reality the process takes much longer. Using this strategy will guide you safely through the process.

What not to do:

Do not attack your competitor. This will only work against you. Do not use excuses. This will make you sound weak and cause irritation. And by the way, sales people are known for their use of an abundance of excuses. Avoid excuses as much as possible.

Conclusion:

A good question to ask your customers in a “business to business” environment is: What are the reasons that your customers buy from your company? The answers you get will avoid most price discussions in the future. Use these same answers in a strategic way with your customer.

When following the above mentioned strategies you will notice that dealing with price issues is not a real problem. At least, in most of the cases. And if you really have to give a discount then always ask for something in return. Never give a discount for free.

And remember: we can’t win them all!