How to Tackle Price Negotiations
What is your usual course of action when a prospective client asks you to bring your price down? Do you give up on the sale? Cave and give them a price below what you know your product or service is worth? If so, it’s time to stand up for yourself and what you’re selling. Here are a few ways to address a request for lower prices, according to HubSpot writer Mike Schultz.
You vs. Your Competition
A common response from prospects salespeople give quotes to is along the lines of, “Your price is higher than that of other companies’ products.” When this happens, you need to verify the truth of their words. If you don’t already know what your competitors are asking for the same product or service, do some research. If your price is comparable or lower, this should give you confidence to take a stance for your price. Instead of calling out the price differences themselves, point out how much more your product/service has to offer in comparison to the competition. Spotlighting the value you’re providing could sway the prospect’s point of view. If it still doesn’t, Schultz offers additional advice. “Offer them an integration or an extra month of onboarding support at a reduced rate. This increases their perceived value without lowering the actual value of your initial offer.”
Another negotiation method prospects use is giving you an ultimatum. They’ll firmly tell you that the price is too high, and that they won’t negotiate. When this happens, they likely won’t be swayed by value that isn’t money-based. So, when your client attempts to slam the sales door shut in your face, your best course of action is to attempt to leave your foot in the door. Schultz says, “If your prospect truly can’t afford your offer, it’s not in their best interest to sign with you right now. Say, ‘I completely understand. Would it be all right if I give you a call in six months to see if your budget is more accommodating to this solution?’” That way, you still have a chance at the sale later. And you don’t come off as pushy or rude to the prospect by persistently trying to make the sale happen in that moment.
Schultz offers two other responses in his article, “The 4 Best Responses to ‘I Need a Better Price’.” Check them out, and don’t settle for less than what your wares are worth!