Want to know how to increase sales without lowering prices? Provide value to the prospect over and over and over again. While price is often an objection, sellers don't have to fall victim to cost adjustment while negotiating. Unfortunately, though, many are doing just that.
"According to buyers, six out of 10 sellers cave on price at some point in negotiations," Rain Group's Erica Schultz reports. This is not a profitable, or sustainable, solution. Sellers must find a way to continue closing deals without offering discounts, which only lowers the value in prospects' eyes and cuts into profits.
As Schultz explains, "While it may be tempting to concede on price to secure a sale, a single concession can make a buyer expect more later on. Lowering the price also says a lot about the value you place on your offerings. If you don't value it, why should your buyer?"
A checklist for how to increase sales without lowering prices
SalesFuel's research found that nearly one-third of sellers say “Challenging misconceptions and budget concerns” is a top weakness of theirs. Additionally, top objections they face include:
- The price is too high.
- I don’t have the budget.
- I can get it cheaper elsewhere.
Likely, these challenges won't go away any time soon.
What's a seller to do? Plenty, and it all involves promoting value. Schultz shares a checklist that sellers can use to ensure they demonstrate value to each prospect during negotiations. This can serve as a guide for sellers to ensure they're promoting enough value to deter any requests to lower prices.
Step One: Uncover buyers' objectives
There's no way that a seller can successfully show value unless they understand what is actually valuable to the buyer. For this very first, and vital, step, Schultz shares her checklist to help sellers get to the root of buyer needs and wants. Each of the six actions will lead to uncovering of what they value, which in turn should influence sellers’ approach. Below are just a few highlights.
First, she recommends directly asking the prospect what they are hoping to achieve, what their pain points are, etc. While the buyer might not be entirely sure, asking can still clue you into their mindset. Asking upfront can set the stage for more in-depth discussions about their objections and give you a starting point from which to work. This likely will take place during the discovery call, so make sure that you come prepared with as much knowledge about the prospect and their business that you can gather. This will help put their response into context. If you aren’t sure how to go about this, check out C. Lee Smith’s free e‑book, “The 7 C’s of Pre-Call Intelligence,” which can be downloaded here.
Ask questions that will get information
Don’t waste time by asking general questions that won’t reveal worthwhile insights. Schultz recommends asking the following:
- “What are the underlying reasons for this request for proposal?”
- “Why didn’t you renew your contract with your previous supplier?”
- “What was it about our firm that caused you to contact us in the first place?”
For those who want to know how to increase sales without lowering prices, they must be able to dig in and ask the right questions to get the right information. How else will they be able to demonstrate value? For even more advice on which questions to ask, consider this extensive list of high-value questions.
One little word can lead to some big insights into why the buyer is objecting. As Schultz notes, “When a buyer makes a demand, ask yourself: why did they demand it? What are they trying to accomplish? The answer is: an objective…This is the first step to discovering possibilities that meet their objectives, which may or may not include their initial demand.”
Even these first few items on the checklist can have a major impact on how you handle price objections. You position yourself for better negotiating, without discounting, by establishing a strong foundation of knowledge and understanding. You’ll not only understand their objectives, but also how you can impact those objectives–all while showing value and safeguarding price.
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