You know the little voice, the one that says, “My price is too high.” According to Forbes Magazine, “Taking a customer’s statements at face value often leads to trouble.”
How many times have you said, or heard another salesperson say, “I know I could sell this if the price was lower.” My question is, “How do you know?” Just because the customer says your price is too high doesn’t mean a cheaper price will close the sale. If you can drop the price you can certainly ask, “What price would be cheap enough for them to buy?” Of course after you ask the question, you also have to ask the customer if you could get the price would they be prepared to:
Give you a deposit, or are prepared to pay in full. Then you will have to negotiate it with your manager or the owner.
Let’s say this is not an option for you; then what?
Does it really mean your price is too high just because your customer tells you it is? Why would a customer tell you that?
- They want to rattle you.
- They enjoy the negotiation process.
- They don’t understand your pricing. The value of the product as you’ve presented it doesn’t equal the price. Personally really good salespeople ignore statements like this and continue to present value. The customer wants to be sure that they are getting what paid for. This is why TJMax and Marshalls do so well; the customers know what their products are worth. The customer has to have confidence in both, you and your offering. Once the customer has confidence in the outcomes, they will buy.
My experience tells me that most of the time this occurs is because the salesperson also thinks the price is too high. Do you understand why a customer would pay so much for your top-of-the-line product or do you think you’re crazy? The answer to this question will tell you why you can’t sell your expensive products.
It’s important to understand that customer buy for their reasons not yours. Why do people buy high prices?
They believe it’s worth it. They get it, and you’ve convinced them it is.
They can afford it. Yes, there are people who like paying high prices. They don’t have to worry about money and so spending it doesn’t bother them.
They want to show their neighbors or friends, they can afford it. I’ll never forget my father taking me to look at a new house he built. The customer, whose name was Wank, still had the prices on the lamps and the faucets! I couldn’t believe it. When I asked why the prices were on it dad said she wanted me to know she could afford it. This became a “Wankism” in our house.
So ask yourself, what gets in the way of you selling at your ticketed prices?
Lisbeth has been teaching sales people how to get their price for over twenty years. Can Lisbeth help your sales force? Call her at 518.495.5380 and discuss your situation.