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.
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