Prospects Never Want a Low Price! HUH?11 Aug, 2008 By: Jim Parker imageSource
Prospects Never Want a Low Price! HUH?
We are all often faced with requests to lower our price. However, is that
really what is being asked of us? As noted business coach Zig Ziglar says,
“Thousands of 6 inch drills are sold every year to people who did not want 6
inch drills. What they wanted were 6 inch holes.” Our customers never, I repeat
NEVER want a lower price. What they want is a better deal. Whether you are
competing with a current payment, competitive bid, whatever, it still boils down
to wanting a better deal. The only way the prospect knows how to ask for a
better deal is to ask for a better price. A peddler will just give him the
better price. A salesperson will help him to see other options that may be
available to them.
I am going to assume that the sales rep has already done their due
diligence and gotten clarification. A professional sales rep will never “launch”
into a rebuttal without first seeking clarification. “What leads you to believe
that my price is too high?” or “Is there a number that we need to work together
to try to meet?” are a couple of possible examples. The answer will go a long
way toward determining which of the examples here you will want to try. If the
answer has something to do with a competitive quote, make sure that the other
aspects of the quote are comparable. If you are shopping for a kitchen appliance
and get a quote that offers free delivery at a higher price, don’t you go to the
cheaper place and ask for free delivery? You may have maintenance pricing that
more than offsets the competitor’s cheaper equipment price. See the whole
picture before you address the concerns.
I am also assuming the prospect would prefer to do business with you, but
needs help justifying his decision. If you aren’t his preferred vendor, alas,
probably nothing but price will win most deals.
It’s a Choice
Some of the choices only apply to cash purchases and some assume a lease
arrangement while some are applicable regardless. Every one of these will work
for you some days, while none of them will work every day. You just need to be
prepared to try them on every deal until something works. I know nothing here is
rocket-science, but just common-sense which I’ve gathered with 25 years of
industry experience. Just don’t take any of them lightly. There is a lot merit
here regardless some of this may seem really obvious to you. Remember, most or
none of these are that obvious to your prospect.
By the time you have tried all of these, the prospect may have voluntarily
told you the real reason he isn’t buying from you. Maybe it had nothing to do
with price to begin with. That’s what you need to find out upfront in order to
effectively use the right tools. Either way, by being pro-active you have saved
face and maintained your integrity. As long as we can say that, we’ll do A-okay
in this business of ours.
STEP IT UP
Remove an accessory. “You can always add it later, Mr. Customer.”
Give away an accessory or supplies. Depending on your pay-plan, it is
probably less expensive to give away an accessory worth $1,000 than it is to
- Give away a printer…same principle as above, but may provide the incentive he
needs. However, never suggest that they can take it home for personal use. That
might constitute a bribe if the decision-maker is anyone other than the owner.
You might also consider giving away entry-level document management information.
- Step down to a slower model. They may have wanted a 30 ppm because that is
the speed of what they are replacing. However, the 25 ppm units of today are as
productive as the 30 ppm units of yesterday unless all of their volume is
- Most units have multiple finishing options as well as multiple paper- feed
options. What about offering a lesser option
- Lengthen the lease. Sometimes just adding 3 months to the term gets the job
done. If they prefer to do business with you, they should be willing to commit
to an extra 3 months to get it done.
- If they have 3 months left on their old lease, add 3 months to the term and
do a 90-day deferred payment lease rather than buying out the old lease. The
customer gets the new equipment now but continues to make payments toward their
old lease. Your payments begin when the old lease runs out. You haven’t paid the
buy-out and they haven’t had to wait to get the new equipment or make dual
- Step Lease. This is a lease where the first year has a lower payment than
subsequent years. “Mr. Customer, what if I had a way for you to have that
lower payment for the first year, would that make it easier?” If you can get
away with a higher payment for the subsequent years, great! If not, you are
still better off than had you given it all away.
- If you can’t compete apples-to-apples, bring in an orange.
Jim Parker, Director of Sales, Complete Business Systems, Inc. Longview,
TX. Contact: Jim@cbs-digital.com