How many times have you run across a customer who is looking for the cheapest price? If you have been selling for any length of time, you have probably run across plenty of customers who buy based on price. Being able to manage such a customer is a business growth strategy you need to master.
Digging out the reality behind their price point
Buying based on price can take a few different forms. It is important to do a bit of digging to find out what form each customer is using.
- Buying within a set budget. Some people have $X amount to spend and that is it. You might be able to bump their base budget up by a small percentage, but not by much.
- Buying based on the cost of past purchases. If you are selling something the customer has bought in the past, they may be comparing your price to what they paid last year or last month.
- Buying based on anticipated cost. Many times, a consumer will do a bit of online snooping to find out the lowest prices out there. They then set their “budget” in that range.
- Buying based on price is just an excuse. The customer may be saying one thing and thinking another. Ask if they have any other concerns besides price. You may be surprised at what comes out.
Managing or eliminating price concerns
Once you know what is behind your customer’s price concerns, you have the information you need to manage the concerns or eliminate them all together. It is a business growth strategy you cannot avoid.
- Turn the conversation from price to value. You know your product. You know your competition. You know the value that your product has over that of your lowest priced competition. Use that information to redirect the conversation.
- Compare products and features vs. the customer’s needs. Many times, a consumer thinks the lowest priced item will serve their needs. However, when you do a point-to-point comparison of what they need with what you have to offer, your product will win.
- Offer a solution instead of a product. People buy products and services to solve a problem or to fill a perceived gap. You need to position your product or service as a solution to their problems.
What do you say to someone who says they buy based on price? Start with “Why?”
Being able to solve a problem for your customer will help keep your Sales Pipeline Full. For more ways to fill your pipeline join our short and informative webinar.