Selling against a lower price can be aggravating. “I can get it from XYZ Corp for 8% less. Can you meet their price?” We hear it far more often than we’d like. What’s a sales pro to do?Your manager would say, “You haven’t adequately sold the value of the product.” To some extent that’s true (it helps them meet their goals), but we all know there are some people who will always buy on price, no matter what. What do you say to them?
“I never worry about my competitor’s lower price; they must know what their stuff is worth. What my product is worth is $X. My product meets your goals of A and B. How many would you like?” With this response, the competition is minimized, and you’re back on track. There is nothing your customer can say to this approach that will shake your explanation of the price differential. All you need to do is take the order. They may talk about budget, giving you an opportunity to discuss payment arrangements. Don’t sell on price. You’ll lose.
What is the client’s goal for the outcome?
When your customer makes your competitor a topic of conversation, you need to change the focus back to your customer’s goals and how your product helps to achieve them. You’re not an expert on the competitor, and even if by some chance you are, it isn’t what you need to discuss to sell your product. Nobody’s goal is to have a 1/4″ drill bit – the goal is to have 1/4″ hole. Stop talking about the tool, and start talking about the goal.
This “They must know what their stuff is worth” approach can easily be overdone and beaten to death. When you say it, say it once, clearly, and then drop it. You’re not bad-mouthing with this approach, you’re stating a fact. If you are perceived as talking trash about the competition, your reputation and your sales are quickly going to be in trouble. Keep the focus on achieving goals, and close our sale.