The Five Pointers on Price
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In How you make the sale the following points are made with respect to price in a negotiation dialog:
- Don't lead with price
- If the price is beyond what the prospect thinks is reasonable; they will quit listening the minute you give your price way and your chance to close the deal is finished.
- Build value before you talk about price
- A bad deal is a bad deal at any price. Make sure you have properly sold your solution. Sell your solution before you hang a price tag to it.
- Ensure a apples to apples price comparison
- It is easy to get trapped when a prospective customers says: "The last guy was a third lower than yours". Make sure the offers compare similar with respect to warranty, terms, delivery, quality.
- Don't appologize for your price
- It is what it is. If it is higher, don't draw attention to it. The customer will notice it on his/her own. If you don't believe it is worth what it costs, advocate for lower prices or quit. It is impossible to sell a product you do not believe in.
- Focus on the Total Value Proposition
- This includes the price of the product, the reputation and of your company as a supplier. the terms and conditions of the sale and the other opportunities.