HOW TO SELL ON VALUE NOT PRICE
I always compete on value.
I refuse to compete on price.
You can too.
When things are tough customers often look for bargains and discounts, but they also want quality and certainty.
Most customers recognize when it comes to quality, you seldom get more than you pay for.
But for some there’s always hope!
A lot of people have come to expect discounts as part of the sales process.
Generally they have no problem asking for them.
Your prospective customers are often anxious about paying more than they need to.
So they shop around for the best price.
But often selling on price alone comes at a huge cost for the business owner.
There is no doubt that a decent discount on your service offering will lead to quick sales and help you get customers through the door.
It may be tempting to employ these methods when you’re starting out, perhaps just until you get a foothold in the market.
But the problem is customers who come to you this way will most probably expect discounts before purchasing from you in the future.
And you may find it difficult to raise your prices without the risk of losing them to your competitors.
Then it’s back to square one!
Every industry is becoming more competitive and customers are becoming more discerning.
It’s challenging for business owners in today’s economy to find a way to defeat the competition without slashing prices.
But you need to learn how to sell to people on value, not price.
Don’t Make Yourself Vulnerable To Your Competitors
Lowering your prices to get that deal may seem enticing but it can be catastrophic to your bottom line.
What might seem like a small compromise in order to win business may have serious consequences for you in the long run.
By lowering your prices you are weakening your business.
It will slow your growth and make you susceptible to attack by your competitors.
There are different strategies involved in pricing that don’t always involve cutting prices.
But they do involve being more competitive.
Discounting your services to prospective customers sends the message that you don’t feel totally confident about your offering, that you think the value isn’t there.
Make a Compelling Promise That Is Benefit-Driven
To successfully compete on value, you do need to know everything possible about your target customer and your market.
Make sure you do your homework.
Research your industry and your competition so you can price your offering accordingly.
If today’s customers are to pay more, they must get more.
There are lots of ways to create value for your customers.
The very best way to defeat your competition is to get the best possible match between the strengths of your offering and your customer’s needs.
Consider positioning yourself in the marketplace to fill a gap, a customer need that is not yet being addressed.
Focus on providing a solution to a problem rather than offering the cheapest price.
And, in order to keep your customers from straying, be sure to promise and deliver exemplary customer service.
Keep in mind that people are willing to pay more if they think they are getting special or significant value.
And if you present to them in just the right way.
One Last Word On Discounting
If you want to sell your services more profitably to more people you must resist the temptation to discount.
Begin to focus on value.
Remember chances are no matter how much you discount your service it will most likely never be the lowest-priced offering in your industry.
A fact that can actually benefit you in your sales efforts.
After all, everyone is familiar with the saying, “You get no more than you pay for”.
The upshot is if you can demonstrate to your prospects that the value of your service is greater than the price you’re asking, you won’t need to worry about slashing your prices or bargain basement competitors.