Dealing with the Just give me the PRICE person?

I work for 24 hour fitness selling gym memberships and personal training. Every once in a while i come across people either on the phone or in person who refuse to take a look at the gym or even give us their info but simply demand "I JUST WANT THE PRICE".

The problem is our prices go from $16.63 a month (they need to prepay $599 in advance for 3 years) all the way upto $50 a month. Depending on whether you want access to all clubs or just one. If you want to a make a long term commitment or simply want to go month to month will all affect your final price.

Is it better to simply quote these rude individuals the 16.63 a month teaser price just to get their attention and then drop the bomb on them later on when they are face to face that they will need to prepay for that? At least the teaser approach will get them to look around my gym and see what i have to offer. Because when i give all the details right away either on the phone or without getting their info it seems like they never come back. -Bodybuilder83fl

I think I would be up front. I would say, "The most cost effective option is $599.00 for three years plus a $16.63 a month member fee, but I would suggest coming in and taking a tour of the facilities we offer before making a decision since we pride ourselves on our quality and services."

That way all is on the table and they can take it or leave it. Sounds like these people just want a gym where they can get in and get out and aren't looking for all the bells and whistles. After you hang up, I wouldn't lose a bit of sleep over if it.

BTW, are they being rude by wanting to know the price and nothing more? I would just make sure a preconceived emotion or thought doesn't come through your voice when talking to them. -Thufir

I agree with Thufir... I called them and only wanted the price as well. I agree with him on being upfront. Also, when I called, there was no compelling reason to pay $1200 over 3 years as being a bargain over $50 or whatever it was, a month. The real question is, how much does fitness matter?

Aloha... Tom :cool: -rattus58

First, I agree with Thufir. Customers aren't necessarily being rude when they don't follow the process that's best for US! But it does present a challenge for salespeople like people who sell memberships and want to get people into the place as a first step.

Next, I want to encourage you to change your focus from "my gym" and "what I have to offer." In selling, it is important for us to focus on our prospects, especially early in the interaction.

I usually recommend people quote a wide (even ridiculously wide) range of price, and then quickly follow up with a question, like this:

PROSPECT: I don't want to come in right now, I just want to know the price of your memberships.

SALESPRO: I would want to know that to. Our members pay anywhere from about $30 per month down to about $17 per month depending upon their particular situation. [And then quickly, without pause:] How will you be using your fitness membership?

At that point, your goal is to do nothing more than to understand your prospect and what there needs are. You ask open-ended questions to help you develop that understanding. Then, once you understand that, you can position your gym in relation to those needs and make a compelling invitation for them to come look around.

Possible open-ended questions you could use:

- What kind of experience do you have with gym memberships?
- How did you find out about us?
- Who will be using the gym besides yourself?
- How will you be using your gym membership?
- When you belonged to a membership before, what did you like about it?
- What concerns do you have about selecting the right gym for you?
- What's your goal in joining a gym right now?
- How much time do you expect to spend in our gym?
- etc.

I've said it a bazillion times: When we focus on our prospects, we do a much better job selling than when we focus on ourselves, our companies, and our products and services. My advice: engage your prospect. They're more likely to like you, trust you, and be willing to come into your gym to take a look around.

Best,

Skip -Skip Anderson

If you're selling a gym membership as a commodity you're on the wrong track regardless of whether you use the aforementioned advice.

An inquiry represents an opportunity. Tell the person that memberships are personalized and that is one of the huge advantages you have to offer. Ask: "Do you live in the area?" Ask him/her to stop by to chat, and not only will you provide a personal tour--you put together a program and costing that will be very attractive.

I've said this before: The key to engaging a process driven buyer (shopper) is to give him a task. The key to engaging a task driven prospect is to involve him in a process. -Ace Coldiron

Body builder
Like Ace I think that the goal of the call should be to get face to face with the prospect.
The idea of ranging the price is a good one too (from xxx down to xxx), which wouldn't necessarily be my first response, but more a fallback if nothing else works.
I try to get sales people to consider the customer, like Skip and why it would be useful for them to come in, as most won't buy 'come in and I'll give you a price'. -marky

Ace and Marky, you've both suggested Bodybuilder get the prospect to visit. But I think Bodybuilder's question is about seeking help to get help in doing that because the prospect is shutting him down. -Skip Anderson

Yeah. Of course i cant sell anything over the phone. But its hard to work with an individual who keeps barking "WHATS THE PRICE?" only and refuses to say or answer to anything else. I think i should only say "If you want the best price you need to come in" and then hang up lol.

I kinda delt with this at the motorcycle dealership too because people tend to take your best price to another dealer who will beat it by 50 bucks or so on a 10k bike and you will end up losing the deal. -Bodybuilder83fl

"Look, Mr. Wantstobuyitnow, may I ask you question? How much does it have to be for you to walk in here with a membership?" The reason I ask is that you can buy a bowflex for the same money and never use it, where in our gym, if you're serious about your health, you'll have help accomplishing your goals."

I was only interested in price myself when I called too, and if you can't get a price over the phone you might get hostility from someone just weighin in with a choice to make with travel expenditures, as I was.

Aloha... :cool: -rattus58

That seems like a good idea. Ill definitely give that a shot. -Bodybuilder83fl

We'd definitely love to hear how it goes....

Much Aloha... Tom :cool: -rattus58

Skips questions are spot on and here is one more.

I am a fan of storytelling using real stories and names. The best story telling involves the client’s feelings where they can relate to the story. I do not sell gym memberships however I do sell a product, service based on value.

This happened today 11.05.09. A client called to ask a price on a high dollar item. Our office staff did not know how to handle this client. They did not want to pay a service charge for us to quote the task nor did they want to schedule a time to meet. The staff asked me if I wanted to talk with this client, sure.

I listened to them and received all the facts that I needed to know and understand. I explained how we operate as a company and why we operate the way we do. I then went into a couple of short stories that almost all of my clients can relate to and in fact have had this happen to them in the past. Have you ever received a quote from someone and once the job was started they came back to you with their tail between their legs asking for more money? Where the blind quote did not compensate for common problems that ride along with this task and you were now forced to pay the extra dollars after they had started the task. We believe that our clients require to be told the truth about the quote before we start the task. Giving you a price over the phone to get into your home is unfair to you without me having to earn the right to serve you.

I set up the call and that turned into a 1600 dollar job for one of our technicians other companies quoted far less however they were doing far less than what we did for the client. In this case it was a hot water heater. We discovered the reason for a price, running out of hot water. The reason, 4 teenage kids using all the hot water that the present tank supplied and they asked for a price on the same size ,heater they presently did not enjoy. No surprises, no disappointment and they found out how much better it is to deal with a professional than a non professional.
-rich34232

A common mistake with giving prices over the phone there is too much information given that allows the client to ask the competition everything you have given them. This reduces it to a price only agenda.

The difference between us and the competition is our questions that they do not ask and the information we gather that they do not. Giving us an edge the exceptional service and value to our clients. -rich34232

Rich, with what you describe above--and I like how you handled it--reveals very little similarity with the questioning procedure Skip advised. At no time, of course, did I see where you ignored what the prospect stated he WANTED. (Neither did Skip) Instead you began, in your own way, an explanation of how you work towards that end. AND you showed the value of arranging an appointment.

It seems to me you were going for facilitation as you engaged the prospect with an interest in their situation.

What I do is go for staging the best position from which to make a sale. One step at a time. -Ace Coldiron

Absolutely.

I iwsh I could find this article it covered giving price only. The jist of the story ,Price was demanded,the sales professional put a low ball price ona contract and demanded the cleint sign it right now.
The client responded with what am I getting and what does this do for me.
The sales professional responded it gets you the low ball price you wanted.

Now would you like to go over a few things to find out what is best for you ?

Giving a price without knowing the situation helps no one and serves no one. -rich34232

I'm not sure I agree. This situation is for people who obviously don't want other info. Sometimes I just want to know what my cost will be without all the BS. I say just give it to them.

If your company isn't ready for these types of buyers then you are wasting your time and theirs, and probably don't want them as customers anyway, so why not just give them the price in the first place? -Thufir

Specifically, which of the suggestions of conversation with a prospect above are you referring to as BS? -Ace Coldiron

Ace, I think you have to know the situation. Sales people can sometimes over analyze and draw things out to death. I think you should be self conscious enough to realize when you should just give the price!

No offense meant with the BS comment. -Thufir

I tend to agree with you, but giving out price doesn't seem to equate to sales for some reason. I think this is because most people undervalue products and services hence get a rude shock when they find out the price. That's why it's important to build value into the product or service you're selling before offering a quote - to justify the expense. On the other hand, some people are stubborn and just want the facts.. with this person quote the lowest possible price and then proceed to upsell based on their needs and wants. Different strokes for different folkes.thmbp2; -sales_ace

So Thufir, exactly when should you "just give the price" in your opinion? -Skip Anderson

I think the original post explained it. I've had times where I just wanted to know the price and the sales person just kept asking questions and telling me things....it gets very frustrating and by the end of the conversation I know I won't buy from that person.

Companies have a low price for a reason. I think we forget sometimes that many people have already done their research on your product and know they want it, but may not have a good grasp on the price. When they say give me the price and the sales person goes off on a speech or asks a ton of questions it can actually hurt the deal. I think we all can tell when someone just wants the price.

Unless you're name badge has BMW on it, your company should have as basic price....don't be afraid to use it. -Thufir

Almost every time I have an opportunity with a client who insists on price only I have found them to be a client I do not want. The only value to the sale is price and they will leave in a second to save five dollars. Why do I want this problem waiting to happen?

This is why I ask the questions I do to discover why they want a price only. I am required to say that quite often it is not the I want a price rather it is I have been taken in the past by unethical sales people and I do not want that to happen again. In this situation I am required to earn the right to do business with rapport building that leads to more trust than usual.

For those truly only after price usually they have little respect for value, loyalty or building a long term relationship where I can help them with more opportunities. My competition in most cases can have this type client. Typically this type of client demands more than they deserve and is the first to complain.

Whenever I have more sympathy than empathy and make a special deal for them to own at a price they think is correct I lose. I am forced to spend more time with them solving more problems due to giving them a price on a product that does not serve them the best way possible due to not asking the proper questions of why, what, and when, where and how.

My attitude with this client nothing here to see move along.
-rich34232

Thufir, what if your salesperson had the ability to engage you inconversation without you getting frustrated? Shouldn't that be the goal of any sales professional?

Yes, true: because they don't know how to sell. If they knew how to sell, they wouldn't have to lose opportunities for profit by concentrating only on price. The real test of salesmanship is successfully selling products that aren't the lowest, right?

The challenge is that just because someone "just wants the price" doesn't mean that this is in our self interests. So we have competing and incongruent goals during a sales interaction.

If we don't have an opportunity to discuss needs, to understand the prospect, to learn about their individual and unique situation, to be able to position our product or service in relation to those specific needs, we lose sales opportunities, not gain sales opportunities. Very few companies sell a product that isn't available elsewhere for less money, so "just giving the price" is a losing proposition MOST of the time in the selling profession. [/quote]



Really? The majority of our products should have as basic a price as possible? What fundamental of business does this follow? I thought our goal was to increase profit rather than minimize it.

Skip -Skip Anderson

Thufir, your thoughts on this are as valid, IMO, as any of the posts on this thread. If I were to join you in your reasoning and perspective--and I COULD--I would have to agree with you.

There are other perspectives, and I want to offer one. When people call a business for price, it is not just for satisfying a random need for information. They are often calling TO COMPARE.

COMPARING means that the COMPETITION is a factor.

How you handle a call involving a request for price will effect how you are compared to the competition---and NOT just in terms of price.

SO--maybe that puts you between a rock and a hard place---damned if you do and damned if you don't. But it doesn't--necessarily. The fact is that many requests for information constitute a live prospect. And you can only convert a live prospect if you have something to offer that outshines the competition and gets some degree of consent from the prospect. It's called The Proposition and and if you don't have one, it's back to the drawing board. That means you must unveil an opportunity for the prospect to move forward now--at least to explore your company more. You do that by engaging the prospect, and by asking questions that would infer that they are talking with the right person with the right company at the right time for the right reasons.

Does it guarantee success in every instance? No--but it's better than waiting for the phone to ring again. -Ace Coldiron

That's not necessarily true. If you are dealing with a "just give the price" person, then your goal should be to at least sell the lowest price your company offers, which my script does in my first post in this thread. If they choose not to take the deal then, like I said, you probably don't want them as a customer anyway, and your company probably isn't selling for lowest price in the first place.

When I want just the price, I want just the price. Sorry, that's how I am and after dealing with customers like this multiple times a day, that's how I think many potential customers are. If the lowest price and a quick response on why they should use my business or product doesn't get them to give me their credit card info or start asking other questions, I'm not sure there's much you can do. I know to many sales people that's anathema, but you can't sell everyone. I am not telling you that you can't try, be my guest, but I think you will end up frustrated about wasting so much energy on these people like the original poster of this thread obviously is.

Sorry, I meant to say "your company should have "a" basic price", not "as basic a price". Every company has a bottom price, right? Why should you be afraid to give it out to "just the price please" people. Even if you are making 1,000% profit on your bottom price, it is still your bottom price. Again, if these people don't like it, then they probably aren't the customers you're after anyway.

I know there's a lot of room for other opinions here. I'm not telling anyone they have to use my thoughts in these situations, but if after a few responses the customer is still saying "look, I just want the price", you should give it to them and not worry so much if they don't take it. -Thufir

I'm with you on this.

Aloha... Tom :cool: -rattus58

I'm new to this sales thing but my background is in real estate valuation. After reading this discussion I've realized for probably the first time there is a major difference between price and value on consumer goods and services. In this past week's sales meeting at work it was suggested to do just the opposite for the customer that just wants a price after we'd taken the time to drive out to their home without allowing us the opportunity to properly define, present, and price the project. Instead of giving them a basic price, the recommendation was to throw out an outrageously large dollar figure. I've actually seen it done on appoinments with senior consultants. The client was mortified at the number then began to ask the questions that would be answered during the meeting.

In our organization the belief is true value is in what the customer receives not in what they pay. For our product we will never be the cheapest nor will we be the highest but we charge a fair price and we do share that information with the price only prospect. My FSM told a prospect the other day that we don't do cheap so if their only concern was price don't call us for that particular product. He then left the meeting with instructions for me to not waste too much time giving them a price for the project I was there to identify because they will not become our customer. I still did what I could to build value because my personal goal for that meeting was to practice that part of my presentation but I have to admit I didn't let any dust collect under my feet while doing it. -sjbrown0324

I agree that value is what you receive, not what you pay for something. I'm not sure I know what your point was "blowing off" someone who you didn't think could buy what you sell, but that is not a practice I'd be inclined to engage myself, but then whatever works for you, works... I guess.

Aloha... :cool: -rattus58

Hi rattus58,

I guess you missed the part of my post where I explained that I didn't "blow off" the prospect. Additionally, we had no doubt that they could afford our product. By their own admission the prospect was just cheap. The Mrs. told us their PBM was price and the drivers of price in our industry meant nothing to them. We will never be the cheapest. We know that and can acknowledge that to the price only prospect up front. Our customers don't come to us because of price and we've been in this business over 100 years. Now while I took the time to define the project and give her the price she wanted I did not waste time trying to convince her to disregard her PBM. While it is possible they will call us back it is highly unlikely because someone else will come in lower. I get paid to work with customers for whom my product in its entirety is the best fit for their needs. I do not get paid to spend time trying to convert the prospect that places no value on the characteristics of my product that make us the best fit for their project. My point, in response to your inquiry, is that sometimes when a prospect tells us something about themselves we have to believe them, act on the information, then move on to the next prospect.

sjb -sjbrown0324

SJBrown, your posts impress me so very much, particularly your communication style and clarity of thinking.

What started out as a very simple topic has developed into an extremely interesting thread. Look very closely, and it can be very instructive for all of us.

The fact is that there is no code in selling, a list of "shoulds" or "should nots" that are going to define us as salespeople. We are free to choose our own ways without the restrictions of dogma and the proof will lie in our pay envelopes and and growth.

There are principles, and we best learn them. If we work for others there is policy, and sometimes that policy would direct us how to sell.

I don't see any right or wrong answers on this thread---my own or anybody else's. What I see is a revealing of personal choices.

I've said this before and I'll share it again. I was very much influenced by Davis Cowper, the hugely successful Canadian insurance guy. He offered five questions we must ask ourselves when we evaluate a prospect. I'll share them here again.

• Will I do business with them?
• Will they do business with me?
• Do I realize their need?
• Do they realize their need?
• Can they pay the freight?

Notice the similarities with some of the points you expressed in your post. -Ace Coldiron

Actually I didn't miss that at all, what I was wondering out loud was the psychology behind that approach in the first place.

I'm ASSUMING that PBM means Principal Buying Motive?

I'm in COMPLETE agreement with you as to price not value and operate on that principal as much as I possibly can. Value is in the little things.

Much Aloha... :cool: -rattus58

I asked about that when the subject came up during the training class. I was told it is about being honest with the prospect. We know in our market that we won't be the cheapest. Telling the price only prospect upfront eliminates many of the price comparison objections we'd otherwise receive. The objection that sounds like, "I really want your product and your company to do the work but company X says they can do it for less. If you can match their price we will go with you." Because our product is exclusive we know the job is different in at least that respect but the prospect doesn't necessarily realize that. Further we don't negotiate price. We will negotiate the scope of the project to suit budget but once the job is defined it costs what it costs. But the price only customers I've run into to date have not been at all interested in quality or value or warranties--only the dollar amount. That conversation starts with, "We've gotten a quote for $X from company y & z. If you can't beat that price then don't even bother." Of course we define the scope of the job as they believe it to be first. It makes no sense to waste everyones time by not stating it up front. The prospect can then let us know whether to proceed.

Yes, PBM means principal buying motive. I shoud have spelled that out instead of using an acronym.

sjb -sjbrown0324

Ace,

Thank you for your feedback. I agree with this observation. That is why I joined this particular forum. I just began reading Zig Ziglar's Ziglar on Selling and he states that ill-informed and ill-prepared sales people are the norm but that it is up to the individual salesperson to decide whether to stay that way. I've only been in sales about 6 weeks (including my classroom training) and I definitely felt that way when I finally got out there. After sulking for about 2 days I realized I better figure this stuff out for myself the same way I've learned countless other complex concepts if I intend to be successful.

I definitely look forward to learning from everyone but I also look forward to the time when I'll be able to make valuable contributions as well. Thanks, again.

sjb -sjbrown0324

Hi.... Got it.

I'm in a similar situation of which you find yourself, though mine is not self imposed, it is company imposed and our premiums are what they are company for company.

Value comes in many forms and a price only client is usually going to miss out on value unless they stumble upon it by accident. For us in insurance, value is usually measured by the longterm, and this can be by acting early (younger) or aggressively (more money up-front).

Aloha... :cool: -rattus58

Price only shopper

Every once in awhile each sales person will eventually have to deal with a client that really wants a price only. This is rare in the grand scheme of things when a client really only wants a price. I personally know if I gave up to a price only client I would lose half of my sales. I have great difficulty understanding the premise to prejudge a client and throw them away without discovering why they want a price only.

I cannot and will not debate about that less than 1% that really wants a price only. It is not worth the time or effort and my competition can have that small percentage. What I have learned over time with the client that wants a price only they have been taken by other sales people in the past and this is a defense mechanism that they have built surrounding them. I am required to build a door that allows the client and me walk through.

I have had clients meet me at the end of their driveway then start explaining the problem and demand a price before they let me in their home. I love this client. This client seems angry and defensive and I know it is their wall and their way. When I do not give them a price they usually attack my professionalism and knowledge. Personal attacks that have no meaning or validity and I understand the reasoning behind the attacks and I am required to let them flow off my shoulders and behind me. This is their protection device and I encourage them to seek a third party to run interference for them.

The other day I had a client ask for a price only. This particular client had information that they gathered from the internet. This is the time my consultant hat becomes visible to the client. I am there to advise the client at that particular moment and help answer any questions they have concerning the product they have gathered information about and intending to own. Knowing my products and other products available allows me to give them a greater understanding and bring into the light the differences. This is when the client realizes that it is not about price and more about what is best for them.

The point that I am trying to make do not pass up the opportunity that a price only shopper gives you and your organization. Learn to persuade and help the client gain a greater understanding of the products and service that you provide to them along with value to them. Changing the attitude of the buyer and seeing the change is a fantastic feeling knowing that they are being helped in a positive way.
-rich34232

Hi everyone,

I'm new here, but I have to say I'm very impressed by the caliber of professionals populating this forum.

When dealing with true "POPs" - Price Only Prospects - recognize that the value they seek is knowing they got the best deal, or perhaps more insightfully - knowing they aren't getting ripped off.

Now, most sales education will tell you to avoid using negative statements when communicating to a prospect, like using the phrase "you're probably just trying to avoid feeling like you've been ripped off" but I've actually found it pretty helpful.

As a marketer and copywriter, we call this joining the conversation inside the prospects mind. If they're afraid, speak to their fear - if they're excited, speak to their excitement. One way or another, you're forcing the prospect to do too much work to put 2 and 2 together. That's the whole reason we talk about benefits instead of features - we're trying to make it perfectly obvious to them why it's good.

On a side note, in copywriting we worry about this too - in the writing of sales letters, this is the same as worrying that they'll automatically flip to the order form on the last page.

So if your caller sounds a bit irate when asking for "just the price," you can use language like this:

[This is for the original poster, regarding callers to his gym]

"Am I correct in assuming that you're asking for price because you'd immediately enjoy knowing that you're not going to get ripped off?

[If this line makes you uneasy, then replace it with: "...immediately enjoy knowing that you're not going to pay more than you should for _____?"]

The truth is, even if I could give you a great price over the phone, wouldn't your next concern still be whether or not we're worth that price?

[By the way, if that wasn't going to be their next concern, it is now!]

Now, you obviously have a good reason for calling, because I know how much it can take for a person to pick up the phone just to call us.

I also know that the reason you called instead of coming by is because you don't have enough time right now to really talk about it at length yourself.

Since you and I both have commitments we need to keep, how about I invite you by so we can properly discuss what you'd be getting in to if you decided that we're the right gym for you - with no strings attached. Ok? Let me just open my calendar..."

I've had a lot of success dealing with "POPs" with this language...

Hope this helps,
Marc -MarcEnriquez

Marc, you make some good points and it is evident that you have good understanding.

However, I want to suggest that nobody should ever use a statement with a prospect such as "you're probably just trying to avoid feeling like you've been ripped off." -Ace Coldiron

I like the just give me the price guy the best - give him the price and ask him if that is it or if it's something more that he needs in the gym or is it only the price that he wants, because if that is all that he needs is a price, your sure there is a gym out there that will charge him much less for a lot less.

Then ask him what is it he is truly looking for in whatever it is he or she is truly looking for then talk about that and only that.

Then close them at any price you want.

Hart
A real sales coach and closer -hartd

What does that mean? -Ace Coldiron

I was wondering the same thing. I'm sure he wasn't saying use a "thin air quotation" and then use one of the "alleged" sales techniques" to sell a package. More than likely he was thinking of quoting one or more of the packages that they offer... don't you think? -rattus58

Ace,

Thank you for the kind words!

I know all conventional wisdom speaks against using a phrase like that...

Certainly, you should always avoid planting the seed in someone's mind that they could potentially get ripped off.

I can't explain why it's worked as well as it has for me in the past, around 60% of the time, but I can say that my simple criteria for who I'd say it to would be the "very frustrated, voice-raising caller" - folks who I could imagine hanging up the phone and shouting to themselves "WHY WON'T ANYONE JUST BE HONEST WITH ME?!"

If I could see losing the prospect anyway if I didn't do something, my next question would be "what's the real risk?"

When one chooses to continue to use any piece of advice about sales and marketing, opinion or personal feeling never matters - only results rule.

Thanks again! -MarcEnriquez

I may be reading this a little differently than you meant it possibly, one of my many afflictions, but this doesn't sound like an objection to me. To me this is more of a validating question/statement than an objection. I take statements such as this as subliminally asking me why we're different and also as opportunity.

Aloha... Tom :cool: -rattus58

Just for the record, I don't disagree with anything that's been said in the last hand full of posts. If you can ask the person a question and have them keep answering, then why not try to close the sale?

Someone said here that the price only person is only 1% of the people they deal with. That may be the case for them, but it certainly isn't for my business. I'm not saying that is wrong, but I guess my situation is a bit different. -Thufir

I see it the same way Tom. Actually, I was thinking of the customer that says they aren't willing to move forward based on price alone. We (our sales team) consider that an objection and I'm learning that all objections are opportunities because it tells me something about the prospects mindset and exactly what needs to happen to sell to them in the moment. When I hear that statement upfront I'm definitely thinking, "OK, what has company X promised to do for them and how are we different." The process of determining need and comparing what the other companies promise to ourselves determines if the prospect actually is motivated by price alone. If I'm unable to convince a prospect of the benefit of working with us using a definition and example of price drivers along with a comparison of industry standards, our standards, and how we compare to the competition to differentiate us in the marketplace I will assume they are price driven in that instance. I know to give up when the prospect tells me they can see the value we provide and really want to work with us so if we will simply lower our price to meet the competition I can earn their business.

My selling game plan requires me to spend as long as it takes to determine the prospects needs. My average successful customer interaction lasts 4 hours. I gauge success by whether I make the sale. The longest it has taken me so far to determine needs and buying motives was an hour and a half. The shortest amount of time has been 40 minutes. Knowing their needs, buying motive, and what they are willing to settle for in another company definitely lets you know whether you are wasting time by not being able to beat a quote they've already received. If the quote is within say 85% to 90% what we would charge we can't be 100% sure the prospect is price only. If the quote is 30% of what we'd normally charge for a project of that size and that is their top number we wish them well and let them know we will welcome the opportunity to work with them if their expectations are not met at that price point.

sjb -sjbrown0324

Sjb, your thoughts are extremely well articulated, but I'm having trouble connecting with some of your reasoning. For instance:

"I know to give up when the prospect tells me they can see the value we provide and really want to work with us so if we will simply lower our price to meet the competition I can earn their business."

Somehow that doesn't seem congruent with someone who will engage a prospect for four hours. That example, as you describe it, is not one where where "giving up" is an appropriate reaction, in my opinion. Rather it is an opportunity to modify the proposition so that a harmonic chord can be struck.

If your example is as it's stated, than something is missing. You could spend four hours looking for needs and buying motives and still be looking in the wrong place. Sometimes we have to examine our own rigidity concerning the offer and terms and find out if that rigidity is warranted by necessity, or warranted by chosen beliefs.

I once coached a company whose founders came from a professional culture and mindset that would not move off a given proposition concerning their services. However, they were now in a different arena selling professional services to a different market where modification to meet a prospect's terms was not only common, it was often required. They had trouble letting go their hardwired policys, and they were hurting. Yet--we could not find one justification for that stance that made good business sense.

When we were able to examine that situation, and when a shift in thinking took place as a result, contracts were won at a steady profitable pace. -Ace Coldiron

-rattus58

Ace,

I understand your confusion. It is difficult to give a blow by blow account of a four hour meeting in a few sentences. My point in all this is that the jobs aren't the same. Often the prospect will tell me the job as we've defined it is exactly the same as the estimate they are referring to. If I'm able to examine the competing estimate I'm often able to point out the differences to turn the situation around. If there isn't a physical written estimate to compare I have to assume what the customer is telling me is accurate from their perspective. I won't call them a liar. Of course, I can adjust a job to fit their budget--if that is the real concern. That is the first suggestion to keep the conversation flowing. Heck, I expect to have to adjust the project when a prospect gives me a number at the door but agrees they will keep an open mind once they find out what similar jobs cost in the region, despite their "competing estimates". A difference that amounts to 10 to 15% is often workable without significant alteration to the integrity of the project. However, because I may have spent 4 hours with the prospect they are usually attached to the solution we've already identified and to which they insist the competition has given a lower price. If that competing estimate is 30% to 40% of our price, and none of the modification suggestions are agreeable to the prospect then there isn't much more I can do but admit I won't be able to earn their business at that time and why.

Because I have to explain to my sales team why I was unable to sell a particular project especially after I've spent that much time with the prospect believe me I definitely get a tie down from them as to why we are unable to proceed. By then I may have asked for the business 5 times. In the beginning I admit I gave up after 3 circle closes but my manager told me he once asked for the business 14 times and it was on the final attempt that he actually earned the business. I start to feel strange after the 5th attempt but I'm screwing up my courage to go longer. I realize I can't improve if I don't know where I lost the sale.

I admit that I am new to professional sales but I am not new to this industry. Please do not think because I didn't give a full transcript of a particular situation that I'm totally ignorant of the many ways there are to make things work in a business situation. I was an appraiser and a consultant in real estate for almost 15 years. My primary role as a consultant was always to find a way to make things work for my client within their constraints. I'm still a consultant just from a different perspective.

sjb -sjbrown0324

I agree with that observation.

There are however tell tales in your posts. -Ace Coldiron

I have an observation. I think the discussion in this thread, although valuable, has morphed from talking about a prospect who didn't want to discuss anything else and only wanted to be told the price, to a discussion of a prospect (who is in a completely different category in my opinion) who only wants the best price.

Aren't these two different sales issues? -Skip Anderson

don't give any price at all. he/she may be shopping around for the best price. -temitope

It's only 4:30 AM here Bud..... stop yer struttin cuz yer the only one with your eyes open..... ;bg

It seems that way doesn't it, but then on the other hand I think that most price only people aren't that stupid either... unless they are buying something of minor convenience. I think that this started with a 24 hour fitness subject, and I personally did EXACTLY the same thing. I ONLY wanted to know the price. I didn't give a whit as to services, convenience etc.. I knew already what they had, their hours etc... but because I spend a good part of every month away from home wanted to know the "price"... bottom line.

The guy there didn't even try to sell me when he should have been querying me as to "Really, you spend that many days away from home? How convenient is it for you to get up at 4:00 AM and go running.... in the rain no less... (Hawaii remember). $2 a day and have someplace to go morning or night or lunchtime for that matter... keep you pumped up and sharp all day Bud.... heck mon... you probably earn that $2 in the first 10 minutes of each day.. man you can invest 10 minutes a day can't you ... to stay on top of your game... no matter where you are?" Or something like that...

And speaking of ... this executive center coffee maker just about caused me a heart attack that bubbly noise they make is usually muted... but this... I'm surprised someone didn't pull the alarm it was so loud... sounded like breakers on the 35th floor... :)

Oh well.... Ok... I'm up nowl... yes you're right it morphed... as I think most buyers do too. Most are "ignorant" of the value you possess, I'm thinking or know the value that they want, which I think is really rare.

I'm up... but it's still early... so these opinions are suspect...;st

Much Aloha... :cool: -rattus58

That's why I consider these interactions learning experiences, Ace. Thanks for your observations.

sjb -sjbrown0324

Some suggestions for you to consider:

"Our prices start at $16.63 a month. If you would like to schedule a time to visit our facility, we can customize a program that will work for you. Would this afternoon be convenient or would tomorrow morning be better for your schedule?"

"Our prices start at $16.63 a month, but we have a wide variety of programs and services that you may want to check out before you make a final decision on a gym membership. It would take about 20 minutes to tour our facility and determine the best membership option for you. I have some time available this afternoon at 4:30, or tomorrow morning at 9:00, which time would be convenient for your schedule?"

Regardless of what line you choose to use, the key here is to close for the face to face meeting.

Good Luck
John M. -saleshangout

When confronted with a customer requesting/demanding the price, i'll say;

"We provide many different packages to our members. In order for me to determine the best package for yourself, let me ask..."

I'm not providing them a price, I'm providing a reason why they need to answer my question and I'm setting the expectation that I will need to ask some questions before I can recommend anything. Most customers open up from here. -MrCharisma

Firstly I agree with all that Skip and Ace say above. However although I'm loathe to give anything away on principle (!) maybe you should consider it. I know a lot of gyms that offer a taster session as part of a promotion. Perhaps you should consider discussing this with your management, the ability to give a one-off taster session to this type of prospect? You could specify that it has to be off-peak so that the gym half empty anyway.
If the customer is pricing-driven she will surely be tempted by a free session and once she is there then you can engage with her and do the whole face-to-face selling your benefits stuff.
Cheers
Mark -markg

i agree with skip anderson. give the information as required and follow with open-ended questions. with that you get more vital information from the prospect. bear this in mind, if the prospect was not interested in the gym wether for himself/herself or for someone else he/she will not be enquiring for prices in the first instance. so close on that opportunity. -temitope

Skip, that was awesome. Give 'em some relevant info then convert to a value-based question.

God I love the smell of closes in the morning. -DynamicMentalFitness