One answer is something that I always preach during The Action Suite when we discuss the price objection in that it is never about the price.
As a matter of fact, I have members of The Action Suite that sell their services and products for considerably more than their competition and the prospects are happy to pay it, even though they know they are paying more. Some may be wondering: “How is that possible?”
One of many reasons is based on Warren Buffets quote, that I have used before in previous blogs: “Price is what you pay, value is what you get.” Based on Mr. Buffet’s quote and the real life experience from the clients that work with me and get higher prices for their services or products, it is clear to see that price is not the issue, but rather the value.
Therefore, the question you should be asking yourself then is not how do I increase my price, but instead, how do I go about adding value?
The value proposition starts with you. How does your prospect value you? What are you bringing to the table? What is the trust and likability factors that you have built? Remember, prospects will buy from those they trust and like and if the price is higher, they will still buy from those that they like and trust. Therefore, building your skill-set when it pertains to bonding and rapport is highly critical. The modern way of building this bonding and rapport is so very different from years gone by.
Secondly, take a look at what you are offering. Is it all it can be, or, is there something you can add to make it just a little bit better than the competition? Is there something that you can add that would make it that so much better; don’t forget to adjust the pricing as with greater perceived value, the expectation is a higher price. In the great majority of cases, it is that perceived value that the prospect is looking for. Remember what Warren Buffet said.
Thirdly, analyze what your competition is doing and what they are offering. This would involve doing a SWOT analysis not only on the competition, but also on your ideal client and most importantly, on yourself. This is an incredible tool and something once again, that we do during sessions of The Action Suite. Once you have the information from that analysis, clients have reported how much easier it is for them to get a clear focus in creating the value that customers will pay a premium for.
Finally, we work on something called VAST (Value Added Strategic Targets) in The Action Suite which ties everything into a neat little package which allows my clients to be paid what they are worth. There is no doubt that if you simply go out and just concentrate on winning deals based on price, all you will win is the race to bottom and I’m not sure if that is a race you would like to win.
In the long run, value is a whole lot more expensive than price. Which would you like to sell?
To learn about doing the SWOT analysis as well as the VAST concept, register for The Action Suite where the talking stops and the doing gets done. We will not only give you the above knowledge and knowhow, but also the tools to make you more efficient, effective and more importantly, the ability to implement it immediately.