Selling on price leads to a number of things:
1. It degrades and devalues the perception of your product, brand or service.
The minute you allow yourself to negotiate on price, you are saying “my product is not really worth the money I’m asking for it” and also “This is not the real price, if you push me ill give it to you for less”
2. My product/service does not really offer the value that it appears to, and is not worth the investment that I’m asking.
Think about it, if you have a high end product or service, but are selling it at knock-down prices, it can begin to lose its shine! Years ago CK was seen as a very high end brand, however since TK Maxx and other discount retailers have begun to sell their clothing with 70% discount, It has lost some of its kudos.
3. It's all downhill from there.
When you sell on price, you have nowhere to go but down….and down and so on. Word quickly gets round that you're selling your products for less and you may even find that some customers who are paying the correct price ask for a rebate!
The Solution
What is the answer then? In a world where everyone is trying to buy on price? Easy, sell on value. Apple do not discount their products, ever! Their smart phones, tablets and desktop computers are some of the most expensive in the world, sometimes four or five times more than their competitors. Think of somebody you know who is always after a deal; I bet they have an iPhone and paid full price for it! They did so because they bought into the perceived value of the product.
When you are speaking to prospects, whether you are telemarketing for leads meetings or trying to close a sale, communicate value. Stop showing a prospect how you will save them £50 and tell them how you’re going to put £100 in their pocket. This is the secret to success in today’s climate.
Try it, and you will find your sales/leads or meetings conversion rates will drastically improve!
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