5 Tips for Selling If Your Price Isn’t the Lowest
Price has always been a major deciding factor in the sales process. But what if you don’t have the lowest price?
One of the best things you should learn is how to sell on a basis other than price. It’s liberating; it’s empowering; and when done well it makes for better business. But for many of us, especially if we don’t have a strong sales background, it’s easier said than done.
Here are 5 handy tips for selling when your price isn’t the lowest:
1. Choose NOT to compete on price
Accept the fact that for some people, price is going to be the determining factor, especially when they see your product and service as a commodity, rather than a specialised product. If you want to sell on a basis other than price, those people are not your market.
Although you understand you’re not competing on price, in practice it’s easy to slip into putting price first and dropping your bids to try and win the job.
If you consciously decide not to compete on price, you need to apply that belief in a strategic choice. Don’t allow yourself to be talked into, or pressured into competing on price.
2. Choose your market and prospects
We need to research our market to identify the sectors, companies or people more likely to be open to a presentation on value—for instance, on factors of reliability or customer service.
Each customer has different needs. The more time you spend trying to persuade customers who are price sensitive, the less time you have to spend with people who are going to be more receptive about your value proposition.
3. Understand what your prospect likes and dislikes
It’s easy to assume that price is the determining factor for most or all of our prospects, especially when economic conditions are not the best. It’s smarter, and potentially more productive, to find out what their priority really is.
Who knows, they might have taken the cheap route before and wasted time and money trying to get good service. Now they are putting a higher value on reliability than on price. With empathy and judicious questioning, we can find out what “rings their bell”.
4. Believe in the value you offer
If you don’t believe that your product or service offers better value than your competitors, then you are going to have a difficult and probably impossible task communicating that message to your prospect.
However, if you feel that what you are offering is really a commodity in the market, that’s a signal you need to up your game. You need to add more value to your product or service. Try offering more incentives such as extra training or the promise of, say, a monthly follow-up call to ensure that the product or service is proving valuable.
Some people do value the fact that you are there to support them, and they are not alone. If you’ve done your work on point 3, this one will be easier, as will the next.
5. Believe you will deliver extra value
It’s not just about knowing that your service offers good value, but you have to know why the value makes your price reasonable and competitive.
You have to believe that you will deliver that value. And if you have staff doing after-sales delivery, you will have to believe they will deliver, so that your promise will be kept.
You may need to do some personal growth work to build your self-belief. You may need to have training sessions with staff to ensure everyone knows about the value promises being made and that everyone is committed to delivering that value.
As sales expert Anthony Lannarino says, “You have to believe that you have the ability to create more value for your dream client than your competitors can or will.”