Oct 18, 2019
Too often, buyers will focus on
price before you’ve had a chance to prove your value. In this
episode, Paul shares some ideas to proactively take control of the
sales conversation.
In this episode, Paul answers the
question, how do I avoid discussing price too early in the
conversation?
Buyers often focus on price early
in the conversation. This is especially true in commoditized
industries. When buyers
view multiple solutions as the same, they focus more on
price.
“Well, any time the customer leads
you into a pricing conversation before you’ve proven the actual
value, your price is going to be too high. The customer has yet to
really understand what it is that you actually do for
them.”
When customers make buying decisions, they analyze four variables:
Price, Cost, Utility, and Impact.
“Price is what you charge for your product or service. It’s pretty
straightforward, but, Cost is much broader. Cost is what that buyer
really sacrifices. Utility is what your product or service actually
does, but Impact is how it really affects the
buyer.”
“When the buyer asks about price,
don’t freak out and start listing price.”
Instead, redirect the conversation
to cost. For example,
“Well, Mr. Customer, I understand that price is one of the many
factors you consider when making this decision, but the reason
you’re asking about price is because you’re really concerned about
saving on
your total cost. Is that right?”
If you’re talking total cost, you
can share ideas to reduce their cost. If you’re talking price,
you’re more likely to discount.
Once you have changed the
conversation from price to total cost, you can discuss all the ways
your solution will help that buyer save on their total cost. The
next step is to ask questions related to total
cost.
Ask questions to identity all the
ways you buyer determines cost. For example, “How do you calculate
labor on this project?”, “How is cost determined throughout this
project?”, or “What are some of those soft
or hidden costs associated with this decision?”