Can You Do Better On the Price?

I think we’ve all been there. You do a great job of working with your prospect, you’ve worked with them through the sales process and everything has been going perfectly. You get to the end, and they ask the dreaded question: “Can you do any better on the price?”

Your palms get sweaty, your heart starts beating faster, and the thought in your head is, “Oh crap…I’m losing this deal.”

If you’re short on time, and can’t read the whole article, here’s the bottom line: The answer is, “No, I can’t.” If you have a couple more minutes, this may help you.

• “Can you do better on the price” is simply a question. And a reasonable one. It’s not unheard of for salespeople to inflate their price, trying to squeeze out as much profit as possible, and hoping that the customer goes for it. They can always negotiate down later on if needed. Buying a car is a perfect example. But the question is just a question. Build value during the sales process and understand that a prospect asking this question does not mean the deal is off if you don’t change your pricing. Explain, with confidence, why the value the customer will receive is well worth the price you’re asking.
•  Understand why people buy. In most sales, people buy relationship and value. They’ve come to trust the salesperson and have come to see that what they’re being offered will solve a problem, cure a pain, or just help them do something better than they’re doing it now. When salespeople rush the sales process, sometimes skipping important steps, they walk away scratching their heads when they do lose a deal. Take your time. Go through the sales process methodically. Don’t lose patience and make sure you’ve covered all the bases. Be certain the customer sees the value in what you offer before asking for the sale.
•  Understand that it’s almost never about the price. I’m not saying it’s NEVER about the price, and I’m well aware that in some businesses you’re offering a highly commoditized product or service. But in most cases, it’s that the prospect doesn’t see the value of what you’re offering for the price you’re asking. If it was all about price, everyone would be driving a 1983 Honda Accord. They run forever, they’re comfortable, and reliable. You can pick one up for very little money. So why do people buy brand new Mercedes? Lexus? Cadillac? or any other new car? The $500 Accord will take you the same places the $90,000.00 Mercedes will. It’s because some people see more value in buying a new car (luxury or not) than a used one. It’s why I buy clothes at Bloomingdales rather than JC Penney. Get better at asking questions that allow you to fully understand what the prospect’s situation is, and how you can help them improve it, then let them know why choosing to do business with you is a smart decision.

I’m not cheap…I’m good. Most people are looking for the best they can get, at a price they feel is reasonable and that they can afford. Are there instances where people will cut you off at the knees to save a penny? Yes. But that’s not typical.

When I share pricing information it’s not a negotiation. My fee is my fee…period. I don’t offer a high number, knowing that the prospect will want to talk me down to a better price. (This is a legitimate technique, and one that should be used if you have previous experience in dealing with a particular customer) My feeling is this: If you ask me for a better price and I give it to you, it means that if you didn’t ask for a better price and bought from me, I ripped you off because I could have offered it for less. I suggest you charge exactly what your product or service is worth. And when a prospect asks, “Can you do better on the price?” you answer with, “I appreciate your asking, but if I could have offered you a better price I would have done so from the start. I don’t play games when it comes to pricing…I will always give you my best possible price right from the start, so that you never have to be concerned about whether you’re getting the best deal and the most value you possibly can.”

Be straight with your prospects. Be honest and transparent. Understand, and make sure the prospect understands, what makes you different than your competitors. Develop rapport. Ask questions. Make certain you understand what the prospect’s situation is. Show them a better way. Ask for their business, with confidence. If you sell on price, you’ll die on price when someone comes in a few pennies less than you.