Your price is too high!
Everyone wants the best deal: a low price and the best product and service. How do you deal with this knowledge? So, what do you think of your price? Is it low, high or just right in your opinion? Do you encounter trouble justifying your price? How do you respond, when your customer says your price is too high?
Price is often mentioned as a reason for not buying a product or service. But is this really the main reason? Research learns us about reasons customers do not buy or don’t come back. The main reasons are:
92% receive too little attention.
86% too little initiative is shown.
79% has the feeling that the seller does not meet their needs.
76% because agreements are not fulfilled.
72% not a satisfactory solution for errors found.
67% has the feeling not taken seriously.
58% has the feeling they are not treated well.
17% thinks the price is too high.
So enough reason to talk about pricing, if only 17% really believes you are charging too high, but 83% tells you differently.
Price used as a reason for buyers not to buy
Some motives of buyers to negotiate about what you are selling, most of the times it comes to three issues: businesswise necessary; lower price of the competition; or prestige. If your buyer tells you that your price is too high, always answer: in comparison with what, is this your only demur? They will give you the information you need to respond successfully. Keep asking questions to get the real answer and solution. Tell them you understand their question for a discount. You can maybe offer them an alternative? Or just tell them you don’t give discounts politely, you only give benefits and mention the benefits.
Dirty tricks of the buyer
Do you recognize these situations?
a) They agree, under restriction of approval of their manager.
What to do? First of all make an appointment with the manager and furthermore convince the manager.
b) Slicing tactic, your customer asks for apparently little adjustment to your product or service, but over and over again.
What to do? Set a surcharge for adjustments.
c) Sketch of a dream contract to come, whereby a low price is justified.
What to do? Ask for guarantees.
Reasons for buyers to pay your price
There are factors that have a positive impact on your price. Make use of these factors in your selling process. These factors are:
- Your product is highly sought after by your customer.
- Your product is already a success.
- Buying your product obtains status.
- There is a clear need.
- There is a certain bond with your product, for instance you are an Apple fan.
- Is there a shortage?
- Is your product profitable for your buyer?
- Saves your product other loses?
- Is it a special offer?
- Are there benefits buying a total package?
- Is it a good investment, that keeps value?
- Are there guarantees?
- Is your product an immediate and easy solution?
- Are the interests of the customer foremost important for your company?
Tips & considerations for your sales pitch
At last a few tips and considerations for your sales pitch:
- Mention the price as late as possible, but do mention the price. Convince at first with your quality and features.
- Be clear about the price.
- When you mention the price, try not to have a little break before or after.
- Demand for the budget early in the selling process.
- Believe in your own price.
- If your customer values your product, they are willing to pay your price.
- Even with a very low price, a buyer will try to get a discount or still customers think you are too expensive.
- Reliability is more important to a buyer than price.
- With standard products, discounting is in the proceedings.
- People always want continuously higher discounts.
- Even if products or services seem the same, price isn’t the only way to compete.
- Never mention the price in itself, always mention the features that comes with it and use the right tone.
- Mention other buyers.
- Don’t let your price stand out in your offer.
- Know the offer of your competitors.
If you are searching for more information about setting your price strategy, also visit these two articles about these subjects:
Infoentrepreneurs.org: how to define your price
Smarta.com: how to set your strategy
Hope this blog gave you another insight in selling your product for your price. Good luck with selling!