As the owner of a Sales Practice companies are surprised when I tell them we are doing OK in this economy. We had a strong business model when the market was fat. We use the same business model now that the market is challenged. The companies we work with that are really suffering right now did not have a strong sales foundation 3 years ago and nothing's changed today. If you're pricing is based on value there is no need to offer steep discounts in this market. I worked with a company that is offering 15% discounts to existing customers because they are asking for it. The company is scared of losing customers so they are giving the discount. I can tell you, there is not a 15% margin to give away. Selling against the Price Objection is covered in Sales 101. If the sales person has listened to the needs of the customer and provided corresponding value, rate will generally not come up at all. If it does, here are some tips on how to handle it:
Prospect: "your competition is cheaper". Sales Person's response: "that's more than likely true. I'm very familiar with that company. They've changed their pricing model several times over the years and as a result the customers that came to us from them complain about inconsistent delivery."
Prospect: "your competition is cheaper." Sales Person's response: "they also offer less. We provide local customer service, 24 hour access, a return policy, what would you like me to eliminate from our service offering to match that price?" (Note: you may be able to negotiate away a no cost service that you provide that the customer is not interested in anyway).
Prospect: "your competition is cheaper". Sales Person's response: "Really? It's hard to believe they can be that much cheaper. I know this industry pretty well. We all have certain hard dollar costs and overhead to accomdate. Sometimes there are hidden fees in a quote to make it look artificially cheaper. Do you mind if I take a look at it for you?"
If your sales people are selling against price and losing, please give me a call. Alicia Dale, http://www.fullcirclemgmt.com/; 312.697.0885
Prospect: "your competition is cheaper". Sales Person's response: "that's more than likely true. I'm very familiar with that company. They've changed their pricing model several times over the years and as a result the customers that came to us from them complain about inconsistent delivery."
Prospect: "your competition is cheaper." Sales Person's response: "they also offer less. We provide local customer service, 24 hour access, a return policy, what would you like me to eliminate from our service offering to match that price?" (Note: you may be able to negotiate away a no cost service that you provide that the customer is not interested in anyway).
Prospect: "your competition is cheaper". Sales Person's response: "Really? It's hard to believe they can be that much cheaper. I know this industry pretty well. We all have certain hard dollar costs and overhead to accomdate. Sometimes there are hidden fees in a quote to make it look artificially cheaper. Do you mind if I take a look at it for you?"
If your sales people are selling against price and losing, please give me a call. Alicia Dale, http://www.fullcirclemgmt.com/; 312.697.0885
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