Without revenue, a sale cannot be made. However, making a sale is not all about the money, and it is a salesperson's duty to overcome their prospect's money problem and be prepared for what objections are thrown their way.
In this article, we discuss the preparation involved in overcoming this common problem, and ultimately, the notion that, "If you win on price, you’ll also lose on price."
Money is a critical part of every effective sales process, and yet, sometimes that very discussion causes us to get “off track” and lose focus on the objective of the call.
While I won’t argue that price is part of the decision-making process, what do you do when the prospect tells you it is the driving factor? This can be challenging, but you can use this information to your advantage to make critical decisions. Once you understand the motivation of the buyer, you can and should decide early in the sales process if it makes sense for you to work on the opportunity or not.
So, what should you do when you find out that it’s a price-driven decision? Well, you need to recognize the following:
- It’s part of the official buyer’s manual. Buyers have been conditioned to believe that there is always a lower price and a salesperson desperate enough to go there.
- Sometimes they buy on price because that is how THEY personally make buying decisions.
- When the prospect tells you up front that this is a price-based decision, you need to ask what else, besides price, is driving this decision and, if the answer is “nothing”, be prepared to move on.
So, what can you do to overcome the money problem?
Answer: You must be prepared.
- Make sure, in your pre-call preparation, you have specific questions to respond to the price issue, i.e. questions that look for things that are important to them other than price.
- Ask questions to help them discover that low price may not mean lowest cost. Price is what you pay for something; cost is what you end up paying or losing out on because of that decision.
- If you are committed to achieving your goals, then you must find prospects that place value on something besides just price.
- In order to do that, you must look at why others are doing business with you.
- Keep a full pipeline. The lack of an abundant pipeline puts pressure on us to work on low probability opportunities.
When you sell off of price, you sacrifice margin, trade “building the kind of business you want” for revenue today and constantly need to “defend” the sale. Unfortunately, we know that if you win on price, you’ll also lose on price.
Don’t let your business be driven by price shoppers.