I had a conversation recently with a friend who is a Sales Coach and trainer in the automotive business and he was relating how many new salespeople in that field are too quick to drop the price at the first sign of resistance. It made me think that it’s probably not exclusive to that industry. In fact, I know it’s not.
We have all been guilty of thinking if we just got the price down a little we’d have “a deal”. That can be double-edged sword and the easy way out sometimes. Instead of cutting the price, think about adding value to your offer or offerings.
It’s back to the scale we’ve talked about before. Instead of taking “price” off one side add “value” to the other. If you want to maintain a profit margin, you cannot give your product away. Besides that takes no talent, skill or ability.
Anybody can sell on price.
But, what can you add to the equation to make your price more appealing for your prospect? When you start to look at it in this manner, you sometimes have to be creative in what you add or in how you add it.
Would better terms, financing or other financial considerations solve the problem instead of lowering the price? Think.
What other aspects of your agreement are negotiable? Make a list of everything that can be negotiated and put the price last. Get into the habit working every angle available before you even get into negotiating price.
Granted there are times where it is the only option—just make sure you’ve exhausted all others before you get out the “price chopper”.