No one likes to pay more when they can pay less. Prospects often looks first at the price tag and later think about the purchase. This make salespeople from the high-cost provider struggle in losing deals based on price.
The chances are high in winning a sales within a low-cost provider but the consequence of buying a poor product will come out sooner than later. It’s simple. If your product is marginally above your competitor’s price –you are going to lose deals.
Apple Company for example, on about the how product reflects its quality and differentiation from others. Bottom line, they top it up. Let us see how world class fancy provider get prospects sign up instead of choosing low-cost competitors.
- Surveying Competition
Knowing the competition from the prospect’s perspective let you see the bigger picture of how they value your/their brand. Asking about “which company win or lose”, “competitors’ selling stage” and “what company best is for.” The tactic here is defining your competitor and you can now discuss how they should see your company as and then you can start negotiating with price.
- Eliminating Competitors
After defining what competitors draws less attention. You can now eliminate that company by providing some insights about them. Here you don’t have to be explicitly discuss their disadvantages but rather make a counter service that your competitor don’t have.
- Marking the Price
If your prospect compares your price with company X then you have to reinforce him/her with the question “what price do you want from us.” Your price should not be based from your competitors. Mercedes would never compare their price from Honda. Make it crystal clear to your prospect that your product is superior from others.
- Make a Story
Surface a story how low-cost product let the buyers and the company down. That they shouldn’t expect a lot from cheap items. Upon wrapping the sales conversation, remind the prospect that -that choices made to save money often end up costing money.
- Use Trial Close
This is where the prospect negotiate with a discount. Often prospects will ask some discounts before buying. The rep who will be caught up in this situation will find themselves opening a can of worm later. Before your prospect ask about a discount, you should see to it they will be buying by giving them an option of price negotiation after the purchase. This is a gamble though, but it is worth trying than losing too much investment from discounts.