81. Do you volunteer to cut your price without being asked?
In the real world it is necessary to make price concessions, however, we should be aware of doing it and not lower our price out of habit or fear.
The reason sales people hesitate to ask for what they want is fear of rejection.
Don't fear rejection.
Don't worry about making the customer angry.
Don't be immobilized by your own timidity.
Don't have negative thoughts that will set you up for failure.
"They'll never give up their current supplier and buy from me, so there's no point in even asking."
If you don't make the request the customer is already ahead!
You've made things easy for them! They made the pitch and you bought it!
You've eliminated the possibility that they might say yes or agree to a compromise solution that is equally desirable.
If you are dealing with a person who is not afraid to ask for what they want and you have only a vague idea of what you want, it is like going into a gun fight with no bullets in your gun.
Set your sights high. When you ask for a higher price you allow yourself room to move--trading for other items in the sale you might want during the presentation.
The essence of selling is to make your request loud and clear so the customer hears it.
Don't be afraid to do just that.
Don't be embarrassed to ask for the business.
The compelling attitude of unshakable confidence and positive expectations on your part is the result of a feeling in your heart that what you have will benefit the customer.
As our conscience guides us in conduct, so does CONFIDENCE intuitively steer our course at the close, directly to asking for the price. If from the time you made your original approach you were careful at each step to ask the buyer questions which indicated your progress, questions which built up favorable admissions, which committed the buyer to positive stands for your proposition, it is then harder for that buyer to begin backing up when you start closing than it is for him to go forward. . .and easier for you to keep him moving than for him to start back.
The next time you have an opportunity to watch a new sales representative under fire, observe that his or her inexperience is most evident in asking for the price they would like to get.
Comments:
The first thing to do is have absolute confidence in your product and service. If you don’t you can’t stand behind the price you charge. Then you immediately fall into the trap of discounting the product. Believe in what you sell and sell the difference to your prospect. If their pricing is close show them the difference in quality. If it is way off the market then either there is a program or they are getting junk. Either way do your homework, junk product is easy to overcome with increased sales and yield. If you can get a cutting then that fixes increased customers. If its junk then do a yield comparison. Don’t forget the extra labor to process product . Bingo—you win. If they are too thick in the head after all of this then move on. They won’t be there in six months and if they are then the checks will be late—not worth the time.
Dave Ferren
Well I guess I am still a little scared about pricing. I have lowered my price after seeing my cost fall through the floor and was afraid the competitors did too and would come in and bust me. Well that was early on, but here lately I have been sticking to what I have set for them and my profit and sales have been going up.
Jason Kirouac
I sometimes cut my price without being asked. The reason is that I don’t want the competitor to come in with a lower price and make me look like I’m over charging them. I only do it on high volume items and on items that I know the customer is keeping a close eye on. Like meats, French fries, cooking oil etc. If you do lower your price on an item you can always make it up on other items like chemicals, coffee and paper products. Every time you lower your price it takes money out of your pocket and the companies.We aren’t in the give away business.
Scott Forgie
I try to know the market I am in and the price that it will bear. I hardly cut a price I have quoted immediately. I don’t want the customer to know it is that easy or put the thought in their mind that I didn’t give them the best price the first time. I will “make the phone call to management” to discuss if we can lower the price this time to get the business.
Danny Swafford
Quoting “list price” first is an effective method. If the price point meets the customers’ requirements for size and portion, fits on the menu, why wouldn’t they buy it if you properly presented it in every other fashion?
An experienced buyer will try to extract a better price from you, it’s their job. Fudging upwards a bit on the list price gives you room to comfortably negotiate with someone who you KNOW is going to take you to the mat trying to nail down a sweet deal. You then have the opportunity to make a profitable sale AND give them what they want.
Chris Chase
Don't offer to cut your price unless the customer absolutely refuses to buy at the price you originally quoted. Don't just assume the customer is going to need a lower price; your original price may be a bargain to them.
David Anderson
The only time I would approach a customer with a lower than normal price would be if we were having a “special” on the product with a discounted price. Many times this will get a customer interested even if he had no thoughts of buying at that time.
But when a customer says “your price is too high”, this is a buying signal. It is the perfect time to start closing by saying “where do I need to be to get your business?. If I give you this price will you agree to buy today?”. This can greatly accelerate the sale process. The customer has to act one way or the other and you have a much clearer picture of where you stand. It also can close out the competition’s involvement in the sale.
Crocker Smith
No way! You should never cut your price until your customer has definitively objected to your rate. If you were interviewing for a job that you knew for a fact had a base salary of 50k, you wouldn’t ask for 40k would you? No! When you do get to a point where you are negotiating a lower price, do it in baby steps, small increments. The customer will feel proud they got you to go lower on your price and you will feel better about not sacrificing profits by steeply lowering your rates during the first go round of negotiations.
Marquesa Ortega
No, I don't volunteer to cut my price. The majority of the time I don't volunteer to do this. If a customer asks me to lower the price, or if I can do better, my response is that this is the best I can do. If they try telling me that a competitor has it for $10 cheaper, then asking more questions about the quality, manufacturer, etc of that "comparable" product is what needs to be done. Rolling back on price quickly is not the answer to this common situation. One thing I have learned regarding the price of a product is this - each person that "touches" that product, has to be paid. In my field, that would be at least 10 different people "touching" that product - either directly or indirectly.
JoAnn Welsh
"Seventy percent of sales people will volunteer to cut their price without being asked. When a salesperson needlessly cuts price, they're liquidating their company to benefit the customer. It is your customers responsibility to get the best possible price from you, and it's your responsibility to sell your goods and services at maximum profit."