As mentioned in previous sales trainer issues, price is more important in the mind of the seller than the buyer. Why is that? Well, it seems destined to be a part of the salesperson’s process. Sales people have heard it repeatedly. They have been bombarded with catchphrases such as: it is more than we can afford; it’s more than we have in the budget; it’s cheaper from so and so; that’s more than we’re willing to pay… At times, when it seems like there is that light at the end of the tunnel, you get stomped with: ‘Can you go back and see how much of that you can cut? Is that your best deal?’
The fourth Sales Trainer issue elaborates upon mindset. You, as a salesperson, have heard the price objection repeatedly. You have heard it so much that you have succumbed to this myth. Although the third sales trainer issue provided you with the statistics, this lie about price persists. Therefore, it is obvious to conclude that your mind is in dire need of some reprogramming.
Bearing in mind that 92% of the time, price is NOT the main issue, why continue to cling to the price motivated myth? I guess if you are told a lie often enough, you may be inclined to accept it as truth. Perhaps the continuous repetition of the price myth has been so properly etched into your mind that you cannot see beyond it.
The myth of price has no bearing upon reality. However, it is just how the human brain works – if you are told something often enough, you will come to believe it. You’ve heard it often enough from the buyers – this whole fixation with price. Unfortunately, you have internalized it and actually come to believe that it is true. In short, your prospects have brainwashed you.
Now, why is it then that these buyers are harping on price if in fact their primary buying decision is not based on price? Why do they go there? Well, buyers aren’t stupid. They are always going to try and get a good deal. They have learned from experience that if you bring up price as an objection that 95 out of 100 salespeople are going to do what they can to cut that price.
In fact, it is almost predictable. If you object to a price a salesperson gives you, regardless the price, 95 times out of 100, the salesperson will drop the price if possible.
This is actually a savvy buyers negotiating move. This gambit says, when you are dealing with the salesperson, anytime you are given a price, no matter what it is, your first response should be what is called the flinch move. Go, ‘Ouch! Oh, my God, that’s highway robbery!’ When you do that as a buyer, the salesperson will lower the price 95% of the time.
Savvy buyers, who have been around the block a time or two, know the flinch move. Therefore, they’re going to do that just to see if they can get a concession. If a buyer can get you to reduce $10,000 by 5%, that buyer has saved $500. More than likely that $500 was gained within 10 seconds utilizing the flinch move. As a buyer, you aim to get things as low as possible. Why pay more?
How this Sales Trainer Technique Helped Facilitate My Business
I used to run a radio commercial that said, ‘Our sales training is expensive and difficult. It is only for people who have guts. So, if you have the guts to go to the next level, give us a call.’ I know what you’re thinking – I didn’t get many calls. You are most certainly correct.
However, when I did get a call, I knew immediately that I got a player and I didn’t have to negotiate my price. I had put it out up front that we were expensive. It became a point of differentiation.
As your sales trainer, allow me to admonish you to do the same. As a salesperson, there is no value in being anything other than either the most expensive in your industry or the cheapest. There is no advantage to being anywhere in between.
If you are the cheapest, you can promote yourself like Wal-Mart and play that game. If you are the most expensive, you can promote yourself like Neiman Marcus and play that game. Let people know that is the business you are in.
I do hope that you understand why you’ve come to accept the ‘fact’ that people buy on price. They don’t buy on price. The real pros, the 5 out of 100, who are really great won’t flinch at all when the subject of price emerges. They know that all things being equal, people would rather pay more if they know they are getting something of greater value.
Consequently, they also recognize that the quality and level of service they provide cannot be given at a discounted price. It can’t be done. They’ve got to get their margin in order to stay in business and make a profit on their product/service.