In most buying or closing sales conversations price becomes a focus or at least it should. We must know what the buyers acceptance level is with our price. If acceptance is high or low make sure you know the answers to the following questions.
- Do they prefer your system, product, service or design over the competitors?
- Are you the salesperson they prefer to work with?
- Is your company who they prefer to work with?
If the answers to these questions is yes, it simply becomes a process of helping the buyer justify any additional upfront costs if they have not already. If they answer no to any of these questions, you need to understand where you have fallen short to satisfy.
You can’t always satisfy all three areas but you can still win the business. By knowing where you are preferred and where you are not will make it easier to justify your value by focusing on the areas of preference.
A powerful way to begin your discovery process is to inform your buyer that it is your hope that they can answer yes to the three questions by the time you present your final proposal. Explain you might be a little more thorough than other vendors, but it is because you want to make sure you make the best recommendation for their company.
Summary: People don’t buy a price, they buy what they want. The price they pay is the value they attach to what they want. If your product or service is the best or close to it, stop lowering price and help customers pay for what they want.
Miller Hieman has a good sales Article on Price if you would like to learn more about improving your ability to sell value.
Yesterday I was talking with Mike, a sharp CCTV rep about referrals. He has been working on increasing his referrals, mainly by asking for them, and it has paid off. I asked him how his last referral conversation went. He said, “The customer was jazzed about the service I delivered,” which led him to handing over some cards and asking the customer if he would be willing to refer him to others.
When I asked him why he did not just ask for a referral right then and there, something hit me. It’s not easy for customers to know who else is in need of services you offer, but they always know someone who enjoys working with a service-minded sales rep.
I realized I have used this approach in my business and had not taken note to share it with others. Rather than asking who might be ready to buy, ask who they know that might enjoy knowing or working with someone like yourself. You might need to reassure them you’re not asking if they know someone who has an immediate need, but rather someone who would want to know about you in case they have a need in the future.
The point is to make it easy for your happy customer or client to introduce you to others. A warm introduction opens the door to a warm conversation that will eventually lead to someone that needs your product or service.
Bonus Tip: When you are given a name, ask your customer if they wouldn’t mind calling or sending them an email of introduction before you contact them.
If you need a quick role-play session on asking for referrals, contact me and I would be happy to work with you.