Our sales training focus in Victoria, Vancouver, Edmonton and Calgary always has a common denominator – B2B Salespeople want to know how to convince decision makers to pay a higher price for their quality product. In a world that seems bottom-line price oriented, it can be a challenge to answer the question “Why would I buy your product when your competitor is offering virtually the same thing for far less?” Here’s how to instill the value that’s required for the buyer to justify the extra investment to do business with you.
You’ve heard it so many times. “Your prices are way too high.” The solution rests on selling the value of your offer. Tough buyers will even respond with the comeback “Look, if your product wasn’t of decent quality, we wouldn’t be having this conversation.” This can easily send an experienced Salesperson back to his or her Sales Manager asking for a deep discount to make the sale. Success in dealing with this objection comes before your client even has the opportunity to raise the concern.
If you’ve been reading the PROSALESGUY BLOG, you know that the best time to fight an objection is before the buyer voices it – see How Great Salespeople Deal With Price Objections. This allows the decision maker to consciously answer the question in their own mind. It’s almost as if they are doing your job for you, rationalizing why the higher price is a smart investment. Let’s give you more tools to build value and perhaps hear price objections less often.
Do you do this?
Too many Salespeople fall in love with their quality product and brag on how great it is. “It’s the best in the marketplace for these reasons. It’s better because of this feature and that feature. Just ask anyone who has purchased it. They love it!” While this may be true, do you think your competition is saying anything different? In fact, they’re providing a benefit that you may not be.
The competition’s claim
“Our product is comparable with XYZ company. When you put the two of them up against each other, they’re basically the same, with one big difference. Our customers buy ours because it’s more cost-efficient. At XYZ, you’re paying for the name and the marketing that goes behind it. Our customers want quality AND a lower cost and that’s what we give them.”
Now that’s a hard offer to turn down. It really sounds like this: “Look, if you want to pay more money for the same thing, it’s up to you.” Who wants to be that buyer?
Know your Customer’s Customer
Move the discussion away from your product from the start and look at what is truly important to your client. “How can I use this product or service with my customers to get the best benefit for me?” That benefit could come in many forms.
Make More Money
How can your decision maker leverage your product or service to make more money from their customer? Ask questions about their customers and understand the relationship they have with them. Your client is in business to make money and your ability to help them make more profit makes you a strong consideration.
Here’s an example: You represent a supplier that has a lifetime warranty on your product and stands behind it. The competition has a limited lifetime warranty with conditions and charges somewhat less. Your customer’s customer is buying peace of mind in addition to quality when considering your product. Have you ever bought a cheaper product with a limited warranty and had a claim denied? What did you learn from the experience? It often causes us to spend more in future on a product with higher quality and better customer service.
Is your customer selling products or services to people who can afford the extra investment, yet don’t want the stress of problems and complications of inferior product? We have all made this mistake before as buyers. We shake our heads and say “What was I thinking? Why would I buy the cheap product thinking it was the same quality? Obviously, you get what you pay for. Now, I have to spend a bunch of time dealing with something that could’ve been avoided from the beginning.” When your customer’s customer buys your quality product, they know that they made a wise time investment and won’t have buyer’s remorse.
When your customer’s customer buys your quality product, they’re actually paying less than the competition’s lower price. Yes – less. If the customer buys a lower priced product that doesn’t live up to expectations, they often find themselves then replacing the bad purchase with the correct one by buying your product. The true cost is the addition of both purchases. Why not make the right decision from the start and buy the best quality product? After all, your client’s customer works hard for their money and shouldn’t have to buy the product twice.
This is a great example of turning an objection into a reason to buy and is technique often used by top-producing Salespeople. In my sales career, I’ve always sold high quality products and services. I always wanted to associate my name with the product I represented. The mark of a Professional Salesperson is to consistently overdeliver in product, service and personal expertise.
That’s what sales superstars do. They exceed their customer’s expectations creating champions who send referrals to them. It’s one thing to lay claim to this, yet delivering on this commitment takes career dedication and drive. The feeling of pride and satisfaction that comes from it is the best form of ROI you can experience.
If you want to find out more about how to make this part of your future sales success, check out our online program The Sales Skills Incubator or our book SHUT UP! Stop Talking and Start Making Money. If you’re a Sales Manager wanting to invest in your team, contact us for fully customized training and coaching.
Dave Warawa – PROSALESGUY