Way too many sales people respond to a buyer’s price resistance by taking one course of action – they immediately reduce the price because they feel that it will enable them to close the sale. Is that action a sales strategy or is down to tough market/ lazy selling/ inexperience/ high quality buyers….
If it’s a sales strategy, then, one thing’s for sure: it’s the wrong one. Price reduction (on it’s own) is normally lazy selling & will undoubtedly condition the seller to believing that it’s OK to take this route on future calls. They reason that it’s the only way to close the sale…..
Trouble is, buyers are now very savvy and will play off one seller’s price against the competition, so that begs the question – is the criteria for selling simply to have the lowest price?
Whatever price you charge will always seem high to a buyer, if their perceived value of your product is low. Price resistance is a good way to get a feeling for the value your prospect has for your offer. If price resistance is low or non-existent you can be reasonably sure that they have a high perceived value of your product or service.
Sales Strategy or Buyers Strategy?
Buyers will always say they want the lowest price: but in reality, they want something that’s fit for purpose at a reasonable cost.
Low price is what a customer pays for the product now. Low cost is what they pay for the product over time. For example, if they buy an accounting software package from the bottom of the market, but it is in continual need of support because the programme crashes frequently – they bought a low price but a high cost. Although they might have saved money initially, their cost over time will be a good deal higher than if they had invested more in a better package.
It is a great deal easier to justify high price if the value is there, than mediocre quality and constant product/service troubles when the value is absent.
(If you believe you’re trying to sell a mediocre product, perhaps it’s time to move on!)
Poor quality, even though buyers save money, is not in their beneficial long-term interests. And how do you prefer to be thought of by your clients?