Tag Archives: #negotiating

How to Sell at Higher Prices

If you’re going to be CompetitionProof, you’ve got to be able to sell at prices that are higher than your competitors because slashing price is a frequent competitive tactic.

Based on my poll of salespeople, price objections are by far the most frequently heard objection. “They’re a good customer, but now they want me to cut my price?” “Why do buyers always ask me to cut the price, even when our prices are competitive?” 

Buyers ask for a better deal because that’s their job! Your customers are often held accountable for getting the best possible deal. Yet that doesn’t always mean getting the lowest price.

I can get you a better deal. . .

Most salespeople volunteer to cut their price without being asked! There is a clinical term for that: stupid. They will drop hints like “of course there’s a discount schedule,” or “It’s the end of the quarter and we want to make our quota.” 

Or they invite price negotiation from the start because they do not believe their product is worth the price they are asking.

Believe in your price

Some salespeople won’t say the price. They’ll offer, “Let me get you a quote…” or they’ll write the price down on a piece of paper and slide it across the table. This behavior signals a lack of personal commitment to the price, opening up a price negotiation. 

If you want to believe in the value of your product, practice this: double your price. Go ahead, double it. Now justify this new price to a colleague. Then roll your price back to the original figure. It will feel like a bargain.

Don’t hesitate to discuss price. Practice saying your price out loud until it rolls right off of your tongue. Deliver it with the same conviction and tonal inflection that you would use to give someone your phone number or telling the time (neither of which are negotiable).

“What’s your phone number?”

“800-743-4349″

“What’s your price?”

“One hundred-seventy-five-thousand dollars.”

Same inflection. You try it.

What to say when you hear “Your price is too high!”

Your customers probably have been trained how to negotiate with sales people. Basic buyer negotiating training tells them to ask for a discount at least twice before making the deal. You’ll have to resist pricing pressure several times to get back on equal footing.

Frequently salespeople respond to a customer’s price push back with a price cut. But wait a minute! Before you do that, find out if a lower price is really what’s necessary to get the business.

When a prospect says, “Your price is too high,” find out what “too high” means. 

“Too high? When you say ‘too high,’ what do you mean? ‘Too high’ compared with what?” 

Find out if you’re two cents too high, two dollars too high, or two million dollars too high.

Make sure that you’re making a tit-for-tat comparison when your customer declares that your price is too high. Odds are it’s not a direct comparison.

“But I can get it cheaper!”

Your customer may try to use your competitor’s lower prices to extract pricing concessions from you. They want your quality, your reputation, your delivery, your support, your guarantee, and your terms, but at the competitor’s price. They’ll compare your competitor’s apples to your apple pie, and ask for the cheaper price.

Frequently your customer has no intention of buying from your competitor. They’re just using the competitor as a negotiating tool.

You can counter this but-I-can-buy-it-cheaper tactic with the negotiating phrase: “We have no argument with those who sell for less. They know best what their product is worth.” 

Or as a vendor in Maine said, “Well, it’s a lot like buying oats. If you want good, clean oats, you pay a fair price. If you be willin’ to settle for oats which have already been through the horse, well. . .”

Now, you’re CompetitionProof!

If you like these ideas, you’ll like this podcast that goes deeper into this topic. 

 

Creating Value and Selling Against Higher Price Competition

How do you remain CompetitionProof in the face of lower-price competition? In these days of increasing competition, it seems that we all face more price competition.

The way to combat lower-priced competition is to clearly establish your value with your customer. That means first understanding what is valuable to your customer and then making sure that they know that you deliver that value.

Next, you need to be able to resist the pricing pressure by responding to the typical negotiating strategies that customers have been taught. You need to use anti-negotiation tactics.

I just delivered a one hour program on these topics to an IT-focused client in Las Vegas and I think you’ll appreciate these CompetitionProof ideas. 

Download the handout and listen to the audio. (Yes, I know the audio is not the best quality, but it’s good enough for you to get the key points.)

Listen and become CompetitionProof.

Here’s the program description:

If you’re like most resellers, you’ve noticed increasing pricing pressures. It’s coming from customers with smaller budgets, from other resellers with shrinking sales, and from other channels who want your customers. It sometimes feels like you can’t get paid what you’re worth. 

If you’re going to prosper and grow, you’ve got to be able to position yourself, your company, and your solutions in a new way, helping your customer see the real value that you bring to the table. In this session you’ll discover how. Here are the topics you’ll learn about: 

·         Creating Real Customer Value: Each customer sees value in a slightly different way. Learn how to identify what’s valuable and what to charge for it. Many sales people miss this one and pay for it in lower-priced sales.

·         How to Position and Defend Your Value: Although you may have a strong position, you’ll have to defend it. You’ll discover how.

·         Why it’s Not Really About Price: Learn why customers really use price as a negotiating weapon and how to turn that to your advantage.

·         When and How to Fire Customers: The fastest way to find better customers is to fire your worse ones. You’ll know how to identify them, how to move them on, and how to replace them.

·         How to Make Your Prices Stick: What you can do to make your quotes become highly resistant to downward price negotiations. Use this strategy on your next deal to keep your prices intact.