Don't you just hate it when you lose out to a competitor on price? One of my clients recently asked me what to do when one of his salespeople quotes for a customers order and then finds that a competitor gets the order by offering a lower price.
Like many businesses, the salesperson visits the customer, establishes their needs, returns to the office and arranges for a quotation to be sent. The salesperson then follows up a few days later with a telephone call to the customer. What often happens then is that the customers says - "You're more expensive than your competitor so I'm going to buy from them." The salesperson is then faced with the challenge of trying to justify the higher price or offer a better one.
If you're the salesperson and you know you're price is liable to be higher than your competitors then there are certain steps you can take. There are things you can do very early in your sales presentation to minimise the possibility of a price objection after the quotation.
Firstly, you need to make a good job of selling yourself, building excellent rapport and providing first class service to the customer. You need to create a situation whereby you have such a good relationship with the customer that they'd feel too "embarrassed" to turn down your quotation. It's also, vitally important that you sell the benefits of your product or service before the quotation. However, only sell benefits that are relevant to the customer's needs. You also need to confirm and gain acceptance of these benefits from the customer.
When you phone the customer to follow up the quotation and face a price objection, there are four steps you can take.
1 - Acknowledge the objection. Say something like - "I agree Mr Jones, price is an extremely important factor in any buying decision."
2 - Refocus on the bigger picture. Say something like - "Would you mind if we took just a few minutes to review some of the other factors we discussed when I visited you?"
3 - Outweigh the objection with benefits that the customer has previously accepted. Say something like - "We've discussed a number of ways that our product can help you meet your objectives for growth over the next two years."
And we've agreed that our service can significantly reduce your overall costs.
There will probably be several previously accepted benefits that you can review with the customer. Always start with the most important ones for the customer and ones that are most likely to outweigh the objection.
4 - Check for acceptance. Say something like - "In light of your overall objectives and our ability to help you achieve them, how do you feel about proceeding at this time?"
Believe me, you won't win them all however these steps are more likely to win more sales and help your business remain profitable.
Alan Fairweather, 'The Motivation Doctor,' is a professional speaker, author and business development expert.
For the past fifteen years, he's been turning 'adequate' managers, sales and customer service people into consistent top performers.
He is the author of - 'How to be a Motivational Manager.'
A down-to-earth guide for managers and team leaders.
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