Posted by Lee Mulberry on Nov 27, 2016 in Executive Leadership
Selling on price is neither fun nor very profitable! Many sales people believe a prospect when they say that the price is too high when the truth is that you did a less than adequate job of explaining the Value Proposition. Price is a fact – Value is a perception not a fact – it is a perception based upon what the buyer feels the product/service can do for them. (My WIIFM blog goes into this in more detail)
There is a marketing term – Cognitive Dissonance – this is the feeling that you get when you feel you did not get a good deal. Most people are willing to pay significantly more to avoid this feeling. For most of us there is a direct correlation between price and perceived value, unless you can absolutely prove to yourself that the lessor priced item is equal.
When you go in with the highest (or higher) price you get to deal in the perception arena, the value proposition arena, the feelings arena. Buying is virtually always an emotional event even though the price objection is the most common.
Selling at a higher price requires that you understand your customer’s issues/problems and how you can help solve them – again WIIFM (What Is In It For Me?). Many, if not most, buyers do not want to have to search for solutions that require extensive analysis on features and benefits versus price. If you can convince them upfront that your value proposition is the best – you most likely will get the sale.
I have used this line in the past to great success “I feel that my company’s price is really low, I think we could command a higher price based upon our excellent value proposition”.
NSC Bottom Line: Get your prospects thinking about value not price and you will close more profitable deals.