PRICE COMMUNICATES VALUE!

pricecommunicatesvalueEvery salesperson that I know, at some time or other, will have to deal with the pricing issue with a prospect.  It is how you handle this particular issue that separates the professional from the nonprofessional. There is no doubt that consumers; be it for a service or hard goods, are always looking for the ‘deal.’

The question becomes: Have they just been conditioned to ask for it?  Is asking for the discount the same as the ‘How are you?’

Here is a radical concept; sometimes, having the highest price will actually increase sales.  I know of a young lady that sells a service in a rather competitive environment.  She is among a group of people selling exactly the same service in the exact same location and she is the most expensive of the group.  She is also the busiest with a completely full client load and has a waiting list of people that want her services.  While the others, the less expensive ones, are desperately seeking clients to fill their day.  Yes, I am one of the fortunate clients and have been for almost three years now.  How can this happen?

Simply put, ‘price communicates value’.  Prospects are more value-conscious than ever before.  Sure they want a ‘fair’ price, but the value has to be there before they pay any price.  Any transaction becomes what one is willing to pay for an arm’s length product/service that they see as creating value for themselves.  If a prospect does not see the value, or, there is no value for the product/service, then it does not really matter what the price is, as there will be no sale.  I saw the value in what she brought to the table and when compared to others, I was willing to pay for that value. Would I have gotten the same results working with a less expensive alternative?  Possibly, but the value she brought was more important to me.

Remember as Warren Buffett, a fairly successful gentleman, said: “Price is what you pay, value is what you get.”  Do your prospects know the difference?  It is of utmost importance that they do.

This does not mean that you should never lower the price, but if there is a price reduction, then the offering has to be adjusted.  For example, I have started the process of looking for a new vehicle.  I could look at the deluxe high-end model of a vehicle with all the ‘bells and whistles’ and look at the price and go: ‘I would love to get this vehicle, but would like to pay 30% less.’  What do you think the chances are of me getting that?  If I could, it would be phenomenal and someone is probably getting fired.  It is more likely that I can get the same model, but there are going to be a few ‘bells and whistles’ missing for that 30% savings.  My dilemma then becomes, how important are the ‘bells and whistles’ and what price am I willing to pay for the value of having those ‘bells and whistles’.

Why is your service or product any different?  Prospects will come to the conclusion themselves of what they value; then they will make the decision of what they want to pay for it.  Regardless what you charge for it.


Written by Joe da Silva

Joe da Silva is a Business Adviser/Trainer/Coach to multi-million dollar companies in Canada as well as internationally. He has uncovered the many secrets to Sales and Business Success over his 40 years in the field. He shares his experience and knowledge with fellow professionals to significantly increase their proficiency, productivity, and profitability through group and individual training, seminars and ongoing sessions such as The Action Suite. Joe’s passion and goals are to mentor individuals with their professional challenges by shortening the learning curve and showing them how to grow into their own success. (JoedaSilva.ca)

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