One of the most common challenges I regularly hear about from business owners is pricing and being undercut by competitors. I have just got back to the office following a networking event and once again the issue was raised.
It’s important to understand that 9 times out of 10 customers will buy on perceived value NOT price. Therefore it is essential that business owners educate their customers on value which then negates the importance of price.
So remember that most people want a good deal, not necessarily the cheapest. They will be happier spending money to get something that does exactly what they want rather than spending less on a product that only does half the job.
- Highlight the perceived value. I emphasise the word ‘perceived’ here as it is always the perceived rather than actual value that is important. There are many ways of adding perceived value for little or no cost and a good coach will be able to help you with this.
- Be upfront, explain why some people charge less but what the prospect will miss out on if they go for the cheaper option.
- Compare yourself to others on quality and service and you’ll find in most cases price becomes irrelevant.
To back this up it’s important to know as much about your product as you can, the more confident you sound the more credible you’ll sound and the more likely your prospects are to regard you as the expert. People like to buy off people who seem to know what they’re talking about as it gives them a sense of security.
Be aware of what your competition are doing, a customers may well ask. But never bad-mouth a competitor, it’s unprofessional and your customers won’t like it.
Ensure you always know more than a customer would about your product and be warned there may be people out there who’ve done their research!
And naturally make sure your team are as well educated about your product or service as you are.