Have you ever been in a situation where you have offered a product/service at a specific price and then been asked the question "can you meet the competitions price?"...Interesting dynamic here... one most sales people don't really understand and one that needs to be explored to put you in a position to succeed!
First, arm yourself with supportive beliefs and thought patterns. Your most powerful selling tool is your mind and the way you look at your business and situations that occur in it! It's never really the price they object to but rather they object to not getting enough (value) for the price you are asking. This can be driven by a host of issues that we have already explored in other posts.
However, let's get back to our example... you've made your offer and now they have said "that's not good enough I have a price from "Dewey, Cheatham and Howe" that I would like you to beat. Take solace here and understand that you are in the drivers seat... here's why.
First, If they had no interest in buying from you they never would have come back to ask you to meet the price. If it was a "price only" transaction they would have taken the lower price already. the fact that they have come back to you tells you something... it is what we call a "demonstration of preference". They have come back to you and given you the final look because there is something about your product, service or company that they prefer. Because of that "preference" you should be able to get more.
There are many "options" that could apply here but let's start with a simple idea. If you could get 1% more margin on every deal like this what could it mean to your business?... how about 2% or 5%. Small differences over large $'s, consistently, can be the difference between a good year and a fair year!
Try suggesting that you can't meet the competitions price but you can get close... but first ask them why they were willing to give you the "last look". This simple questions might reveal how much more you might be able to get. Then, suggest that you can't meet the price but you can be within 2%. This is just a guideline not specific to all businesses and circumstances but most people (because of preference) will be willing to give you a little more!
So next time you are confronted with this "opportunity" resist the easy way out, don't offer to match, get a little more... you're worth it!
Action Step: Practice the strategy and be prepared for your next opportunity!