How to Handle the Price-Focused Prospect
No matter how much you stress value, there will still be prospects who fixate on price. Requests for a “best price” can cause a rep to immediately discount the product or service–but that shouldn’t be the knee-jerk reaction. “Most [reps] will jump to a discount conversation simply to get the deal inked — offering what they think is the ‘best’ price they can do,” Ali Powell writes in an article for HubSpot. “But this is a mistake.”
No rep should feel like he or she has to instantly lower costs. Reps who are thoroughly educated in their pricing structure will have a better understanding of why something is priced a certain way. This understanding will give them the confidence to stand by the cost. Also, early (and frequent) discussions about the price throughout communications can keep everyone on the same page.
Powell only considers discounting if :
She has established that the buyer sees the potential value in the product.
She has established that the buyer believes the product will address the problems they've discussed together.
The buyer is 100% ready to pull the trigger and make a purchase.
If a buyer asks about a “best price,” chances are that at least one of the above isn’t happening. Not sure if the buyer is ready to pull the trigger today? Just ask! Powell offers four questions you can ask to get your answer:
"Why do you want to talk about price right now?"
"So are we at a place where you are ready to start using this product?"
"Have you made a decision that X is your choice?"
"Before we talk about pricing options I want to be sure you are choosing us over XYZ competitors. Is that right?"
These questions should uncover whether the prospect is truly ready to buy…and if you should consider discounting. Powell emphasizes that even if the buyer isn’t ready to commit just yet, listening is always vital. If you truly listen to the prospect, any discussions about price will end up benefiting you both.