Don’t be fooled, your price is never too high. Use these tactics.
In this 3 minute blog, you’ll learn the real reasons why clients claim your price is too high, and how you can counter that and become more entrepreneurial.
Table of contents
- Your price is too high!
- Price used as a reason for buyers not to buy
- Dirty tricks of the buyer
- Reasons for buyers to pay your price
- Tips & considerations for your sales pitch
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 about your price? Is it low, high, or just right in your opinion? Do you encounter trouble justifying your offering? How do you respond, when your client says you’re too expensive?
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% have 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% have the feeling they are not treated well.
- 17% think the price is too high.
So enough reason to talk about pricing, if only 17% really believes you are charging too much, 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 time comes to these three issues: businesswise necessary; lower price of the competition; or prestige.
If your buyer tells you that you are too expensive, 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. Can you maybe offer them an alternative? Or tell them you don’t give discounts politely, you only provide benefits and mention the benefits.
Dirty tricks of the buyer
Do you recognize these situations?
a) They agree, under the restriction of approval of their partner.
What to do? First of all, make an appointment with the partner too and furthermore convince the partner.
b) Slicing tactic, your client asks for apparently little adjustment to your product or service, or a light version. Sometimes 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 client is in a high need for your product.
- Your product or service is already a success; testimonials.
- Buying your product obtains status.
- Your client has a clear need for your services.
- There is a certain bond with your offering, for instance, you are an Apple fan.
- Is there a shortage?
- Is your product profitable for your buyer?
- Saves your client other losses?
- Is it a special offer?
- Are there benefits of buying a total package?
- Is it a good investment, that keeps value or gives rewards later?
- Can you give guarantees?
- Is your offering an immediate and easy solution?
- Are the interests of the client foremost important for your company?
Tips & considerations for your sales pitch
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 your price.
- When you mention your price, try not to have a little break before or after.
- Demand for the clients’ budget early in the selling process.
- Believe in your own price.
- If your customer values your product and service, they are willing to pay your price.
- Even with a very low price, a buyer will try to get a discount. Or think about a blue ocean strategy.
- Reliability is more important to a buyer than a price.
- With standard products, discounting is imminent.
- People always want higher discounts, with bigger volumes.
- 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, but focus on your benefits.
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
Becoming more entrepreneurial is also a good strategy to come up with novel pricing plans, that your customers can’t easily compare or confront you with. Maybe you’re curious about your own Entrepreneur Scan score? If so, you can take the scan for free here.
Besides this kind of entrepreneurial knowledge of pricing strategy, an entrepreneur has to possess skills, abilities, motivation, and many more competencies. Read the blog What is the difference between Skills, Abilities, Knowledge, and Competencies.