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One of the most frequently used excuses for losing a sale is the price excuse. Someone else gave the prospect a lower price. End of story.
But I have a question: If the competition is the guy with the lowest price then how does Rolls Royce, Gucci, and Tiffany stay in business? They don’t sell the cheapest stuff on the planet.
If the price excuse was true everyone would own the lowest cost cars, live in the lowest cost homes, wear the lowest cost clothes and eat the lowest cost foods. Companies that sell luxury goods, in fact companies that sell everything but the lowest cost goods, would go out of business.
Of course the price excuse isn’t true unless you are selling a commodity where there are no points of added value or differentiation and remember, those purveyors of luxury products have made it their business to create added value differentiators and they communicate those differentiators very effectively.
Yes, there are some people who are seeking the least expensive products or services, but in most cases, the real truth is that someone who feels they lost a sale on price, generally did not create or demonstrate enough added value, points of differentiation, added features, or the added benefits of their product or service.
If your prospect doesn’t buy from you, while price may be part of the equation it usually isn’t the only factor. The other parts of the equation have to do with the fact that you didn’t really discover what they wanted, you didn’t present yourself or your product well, you didn’t demonstrate your ability to satisfy them, you didn’t give them enough confidence, or you didn’t communicate all the benefits that you deliver in addition to the commodity value of whatever you are selling.
In order to counter the price excuse, carefully think through your differentiators. Develop talking points for every one of them. Communicate them constantly and consistently. Make sure you discover your prospect''s needs and align your value-added differentiators with those needs and you won’t need the price excuse any more.
Larry Galler specializes in coaching owners of small businesses to grow their business through effective marketing, customer retention programs and systemizing their business practices. Explore how he can help you during a free coaching session by calling (219)464-9463 or e-mail Larry@LarryGaller.com. Visit his website at www.OneYearToGreatness.com.