Best selling autor and speaker Tim Connor, CSP
Prospects and customers want several things from their suppliers. Fair price, quality products and services, and timely service (not in order of their preference). Surveys of consumers have shown over the years that most consumers want: timely and responsive service first, quality products and services second, and low price third.
For over thirty years, I have surveyed my sales audiences (These have not been sophisticated surveys folks, just a quick question I have asked thousands of salespeople over the years.) I have asked them what they believe is the most important of the three items mentioned above to consumers, and the results of this question has been almost 100% consistent: low price first, quality second and service last.
During the same period, I have asked my general audiences the same question and again the answer has been almost 100% the same: service first, quality second and price last.
We seem to have a difference in perception here between what consumers say that want and what salespeople think they want.
There are three elements that must be understood by salespeople if they are going to effectively deal with the price issue. First there is price. That is what people pay for what they buy. Second there is cost. That is what they pay for what they buy, over time. Or what it costs them to do it late, wrong or not at all. And then there is perceived value. That is what they want for the money they pay.
Most consumers tell salespeople that what they want is low price - when what they really want is low cost. Now I know that many of you might take issue with this statement, but I only ask that you consider for a moment what you as a consumer want. Do you want the cheapest, or that which solves your problem or answers your need or desire? Most prospects or customers want their problems solved. They know that you get what you pay for, and that the distaste of poor quality and service lasts far longer than the sweetness of low price.
People object to price when they feel that what you are asking them to pay is higher than their perceived value. Most poor salespeople, when they get price resistance, lower the price. Most of the time, it is not a price a price issue, but one of too low perceived value or low cost. How do you raise perceived value? Find out what is preventing your prospect or customer from getting a good night's sleep, and show them how your product or service will satisfy this need/want, or, even better, exceed their expectations for value and you will have a friend for life.
I guarantee you, price will be secondary. Not cost, but price.
The real sales pros focus on value - what the product or service does for the customer - and not the price. They understand that price is an issue, but not the most important one. Price will always seem high when perceived value is low. The way to change the relationship between price and value in the other person's mind is to raise value. Lowering price only makes them question your original price, as well as the lower price, with suspicion.
It should therefore be obvious that you never want to introduce price too soon in the sales process - until you have had the opportunity to build value in the prospect's mind. If you have a price-only buyer (And yes they are out there) you must decide if that business is worth it to you in the long run. I can only tell you from experience, the prospects who made a big deal out of price and expected all kinds of price adjustments ultimately required a lot of other concessions as well. Use their attitude about price and cost as a barometer to the overall quality of the relationship in general.
