Use These Simple Tips to Get Out of Price Wars and Start Selling on Value
“…Most salespeople believe that clients do buy on price. They don’t believe that they buy on value.”
Gavin Ingham makes that rather provocative statement in this post.
He later continues to add that most salespeople will readily admit it’s better to sell on value – but they’re just giving lip service to what they know they’re supposed to say.
The reality of sales is that – yes – many clients buy on price. And you can’t convince them all that you have unique value to offer.
But, as you know, price wars are really a lose-lose-lose proposition. From your side, you make less money on the sale, and your company doesn’t perform as well financially.
Your clients, because they don’t see the value, complain more. They don’t stay with your business as long.
Price wars are ugly, nasty, dirty, awful, horrible – and nobody wins!
So how do you get out of these fracases?
Some tips:
1. When the Prospect Ask for a Discount, Focus the Conversation on Value
The very fact that your prospect even asks for a discount in the first place means they don’t understand the full value of what you have to sell. Part of that could be your responsibility – not identifying their true needs.
But some of it falls on the prospect too. In some cases, they need to hear your value a few times before they get it. Others just test you to see what they can get.
Don’t give in to them!
Instead, talk about 3-5 points of value your services offer. If they buy, they buy. If they don’t, they don’t.
2. You can Compromise Too…
Let’s say your customer asks for that price break once again. Then, you ask them what their basis is for their request.
They come back at you with some absolutely absurd reasons they want a price break. Basically, they just don’t want to pay.
If you don’t think they’ll ever buy based on value, offer them a less-expensive service at a better price point (that’s not discounted).
3. Come Armed with Lots of Stories and Specific Data
These are the “big guns” you should pull out right away in all your sales conversations. You should know 2-3 specific stories of customers who had problems very similar to the ones your prospect faces.
Each story should have very specific data that outlines the exact result you got for your clients. You should know these stories so well that you can tell them with the same detail you tell some of your favorite stories growing up.
And, your company should have them built out as professional case study documents. If you can get video testimonials from your customers, that’s killer too.
In marketing, they say “facts tell but stories sell…” It’s one piece of wisdom to use in sales too.
Do these things and happily let your competitors snap up the lower-priced customers…they’ll drag their businesses down. You, on the other hand, get stability, on-time pay, and customers that stay with you longer because they get your value.
