Just like selling to the right type of prospect at the right time, your product’s or service’s price is a prime qualifier in sales. If you mention price without having thought about where it best fits in your sales process or playbook, you are missing a big trick. Here are 3 insights why and what you can do about it.
1) Perceived value
From a buying and selling perspective price is a sensible discussion point. It helps both parties to decide a next step. Pricing can fluctuate immensely based on the perceived value the buyer puts on the product. A buyer may be turned off by your low price by discrediting it automatically, especially if the product or service he or she believes is important to their business. My earlier post related to Stella Artois is a great reverse example. Sometimes, expensive is a positive element in purchase decisions. Salespeople who understand the concept of perceived value, use it throughout their sales process and win more bigger and better deals.
2) The power of 9
Prices ending in “9” ( charm pricing) can be more appealing than others, which can work better for both low- and high-end ticket items alike. Good example are petrol and new build houses pricing. Plenty of ‘9s’ there! Salespeople who understand the power of 9, use it and win more business that way.
3) Timing
Salespeople can either reveal price in the beginning or near the end – it depends on the industry and the company. By revealing price early on, they can disqualify a lead that would otherwise consume valuable time only to conclude it does not fit their budget, while they could focus on other pursuits. By revealing price later, salespeople could build value and uncover needs that the customer might not say directly and you would only find out by proper questioning. Salespeople who understand the power of stating price at the right timing the sales process, make more sales.
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