Competing on price is a lose-lose situation for you and your prospect.
If someone’s hunting the cheapest possible option, the person providing it (at a cheap rate) usually can’t provide the same quality, service and support.
So while the front-end purchase may be cheaper, the long-term consequence of price shopping ends up being more expensive to the buyer. While they’re being seduced by the low price, they’re also being deceived, as they don’t know the ramifications of choosing that cheap option.
In the end, everyone loses.
The supplier isn’t able to make any profit, so their business suffers, and the purchaser suffers because they’re buying a mediocre solution (but don’t often know it).
If a prospect is trying to negotiate with you on price, or suggesting they are shopping around for the best deal, they see you, your product or your service as a commodity.
One way to de-commoditise yourself is to educate your prospects on the mistakes unsuspecting buyers make when purchasing products. Literally, spell out why buying the cheapest option is actually the most expensive option and you’ll put yourself in a position to start changing people’s minds.
That’s the trick. Break it down for your prospects and show them the quantifiable amount it will cost them in the future if they choose the cheapest option now. Be their crystal ball. Show them the future. Articulate the consequences. Then create the collateral they need to connect the dots.
HOT TIP: Create a ‘7 buying mistakes’ guide for your product. You can work this into your packages, put it on YouTube, put it onto slides and even create some audio around it – any format you can use to get it in front of your prospects.
You don’t want customers in the ‘looking zone’ – that is, they are looking and getting quotes. They are shopping on price they will want a quote from you. The thing is, you don’t have to give them one just because they ask.
Say this instead:
“It’s highly unlikely you are going to choose us because we’re one of the more expensive in the market. If you are looking to buy on price rather than on value, save your time. We’re not the people for you. However, I am an advocate for my industry. I see people getting burned all the time and getting themselves into trouble because they don’t understand the hidden costs of the cheaper option. While it may be a great offer up front, it’s actually going to cost you more in the long run.
We’ve done research and have put together a document and a video. I’d love the opportunity to send that to you to help you make the best decision. It will give you a checklist to follow to make sure you get the best supplier for what you need. These are insights you would only have after 10 years in the industry and after seeing the many horror stories.”
If they aren’t interested in you sending that through, they’re not your kind of customer. If they are interested, your insights may change the way they think and it’s likely it will change the way they perceive the value you offer too.
Now they will come to you instead of the other way around. It’s about providing people with all the collateral and content they need to make an informed decision. It also backs up your most valuable items and justifies a higher price.
Come along to our London Brand Accelerator on the 11th of March.
Being good at what you do isn’t enough anymore. You need to communicate clarity, establish credibility, create a product ecosystem, be visible and partner with high performers.
Do you wield true influence or are you just another self-promoter? Find out where you stand.
Success requires the ability to influence. Answer 40 questions and receive a tailored report (it’s free), which will benchmark your ability to influence in a business or leadership context.