No... it's never really just price, but the fact that for some reason your prospect doesn't believe you're worth the price! Back in college I learned that "price" was just one component of "cost", and cost included a host of other issues (quality, delivery, performance etc.). The key is to get the customer to forget "price" and find a way to have a discussion about "cost". You must get control of the call by asking some good "reflective" questions.
We could go on and on about cost vs. price but there are some questions you should consider as part of your "defense" against the price issue which will help to lead you to a discussion about cost.
1. Is price your only concern
2.If there was a product that worked better would you ever consider paying more for it?
3. You seemed concerned about price... why is it so important to you?
a. Are your customers making price their primary reason to buy?
b. Is there more competition in your market making it difficult to compete?
c. When you ask about price are you really trying to lower your costs and make more margin?
4. If you looked at three vendors and the prices were about the same how would pick?
This last one takes the price issue away and forces the prospect to tell you what really drives them to buy. It may be one of the most useful "reflectors" or "re-directors" that you can learn.
All of these questions will open the door to a discussion about how you might be able to help your customer achieve their goals... to do that you first have to find out what they are and usually a "price" discussion won't get you there. Be prepared and practise your responses regularly so when the question comes up in a call you're ready.
This is great and helpful info that many of us forget too often. Thanks for the reminder and the tips!
Posted by: Kati Swaback | September 05, 2006 at 09:43 PM
Thanks for your note and congratulations on your promotion. Stay tuned more to follow!
Posted by: John Hirth | September 06, 2006 at 05:49 PM