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.
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:
So enough reason to talk about pricing, if only 17% really believes you are charging too much, but 83% tells you differently.
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.
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.
There are factors that have a positive impact on your price. Make use of these factors in your selling process. These factors are:
A few tips and considerations for your sales pitch:
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.
Read more on successful entrepreneurship.