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A bit of a no-brainer, but here is one for the weekend to reflect on.
The moment you offer your prospect a lower price than the incumbent competitor you make the buyer believe your offered products and services are equal or worse.
You imply that there is no differentiation between your products and services and that of the competitor and that no added value for their business can be found. The only way to differentiate is the price.
Think about this when your prospect is asking you for a better price than they are paying now. It’s up to you if you sharpen your price or sharpen your value pencil.
The fact that price is even a focus of the discussion means you have not done a good enough job earlier in the sales cycle. You have missed the opportunity to create greater value in an area your prospect has issues and challenges they would like to overcome now or in the future.
If you truly believe your company, your brand, people, products, and services are putting your prospect in the position to
- take more market share,
- capitalize on more opportunities,
- drive more customer loyalty,
- lower cost in parts of their business they had not thought about
- really outperform their competitors
- achieve what they want to achieve
then you need to communicate how that exactly would work out for your prospect when they change to you from their current supplier.
And that greater value comes at a higher price. If you have been able to show the greater return on their investment, indeed, your buyer is willing to pay a higher price.
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