Overcoming the price objection
What is your product or service worth in the mind of your client?
There are two ways to increase your value
- reduce the price
- raise the benefits.
Constantly dropping your price will cut into your margins and threaten the sustainability of your business. People know that rock bottom price also equates to low quality and poor service. The thought of simply competing on price can leave you feeling defeated before you’ve even started a sales conversation
In contrast, amplifying the perceived benefits will often make the dollar price become irrelevant. Your business will be seen as ‘value laden’ (and not overpriced as many fear).
Remember, your prospects do not buy on price, even if they think they do.
To be perceived as worth every cent, you must know exactly what your prospects care about most and be able to communicate this confidently and clearly. This is your Value Proposition.
The key steps to build an exceptional Value Proposition
The first sale is ALWAYS to yourself. If you don’t believe in the value of your offer, you will never convince someone else.
Maximise your level of knowledge. The deeper the awareness of your target market and offering, the stronger your ability to influence.
Practice saying your price out loud. Embed it in your neurology. Say it enough times for it to be second nature. When you speak about money it must flow confidently from your lips.
Spend time to deeply understand your prospects. Who are they and what do they value – why might they buy from you over a competitor? How can you use this information to increase their perceived value of your offer?
There are many examples of values that you can address, these might include: Convenience, Quality, Longevity, Risk, Guaranteed Supply, Health, Timeliness, Opening Hours…. The list goes on. Your value proposition must clearly position your offer. A great example of addressing quality over competitor’s price is
‘We fix $7.99 haircuts’
When you believe in the value of your product and can prove it succinctly to your prospect, your product or service will have a greater value than the marked price. The sale will make itself.