|
To Match Price or Not to Match Price For many salespeople, that is the question (even though it shouldn’t be) Few things pain a salesperson more than being asked to match price. Especially because, at that point, they have usually spent a considerable amount of time wooing the prospect. They’ve done the demo, written a proposal and put in several follow up calls. Sound familiar? If so, then keep in mind being asked to match price is only part of the problem.
Now on to the burning question: Should you match price? Let’s begin by taking a few steps back and examining some of the scenarios that could have prompted your customer to ask that. Chances are they want to do business with you. They are just not good salespeople themselves and don’t know how to sell your solution to their bosses. They can’t justify why their company should pay you more than what your competitors are asking. That’s where your skills come in! You need to train them so that they can make the most compelling argument possible on your behalf.
Begin by thanking your customer for the opportunity to do business with them, then kick the ball back over to their court: Why are you asking me to match price? Pay close attention to their answer. It will be filled with clues on why they are having a tough time selling your solution to their bosses. Proceed with another question: Why do you want to do business with me? Again, keep your ears open. They will most likely tell you what it is about your solution that makes it a good fit for their company. Now you’ve got all the ammunition you need NOT to match price and still get the deal.
My experience as a sales trainer, combined with years in the field and extensive reading on the psychology of selling, has shown me that there are three reasons why people buy:
#1: you and your relationship with them #2: your company and its reputation #3: your product.
The bottom line is people buy emotionally and justify logically. So use all the information you have gathered to enlist their sympathy. You might want to try saying the following: “Mr. Customer, you have told me that you want to do business with me because __________(fill in with all the great things he had to say about your solution) and yet what you are essentially asking me to do is to sell you a Mercedes for the price of a Buick. Can you help me?” By asking him that question you have essentially accomplished two very important things: You have given him the roadmap to sell your solution logically to his boss and you have also sold him emotionally. After all, you’re a great guy (or gal)! Who wouldn’t want to do business with you?
So should you match price? No! Instead, help your customer become a better salesperson himself. Not only will you have secured a better deal, but you will have also avoided becoming a pawn in their negotiations with other vendors.
Good luck and good selling!
To learn more, check out the following materials by John Costigan: |
>>FIND OUT MORE
|