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Competitive Prices - Why Do Prospects Bring Them Up?

  
  
  

Dave Kurlan is a top-rated speaker, best-selling author, sales thought leader and highly regarded sales development expert.
A group of salespeople in today's training revealed that their biggest challenge is dealing with prospects who tell them that they saw something similar for a lot less money.  When asked how they handle it, they unanimously said that they justify (read defend) their price.  They failed to realize was how weak their position is and that the prospects don't really care.  They also weren't aware that they were assuming that that prospects bring this up is to get a better deal.  But prospects could be bringing this up just to "let you know..." or because they are confused, or because they want you to know they've been looking around, or because they don't know how your product or service is different.  They could even be attempting to help you!

Why does this happen?  Weaknesses impact how salespeople will respond and in situations like these their Non Supportive Buy Cycles and Self Limiting Record Collections are usually to blame.

When you coach your salespeople, make sure you take these weaknesses into consideration because simply telling them what to say usually won't change anything.

A better way to handle this scenario would be to say, "Oh, I saw that too. Do you have any idea why the price is so different?"  This forces the prospect to provide the reasons why - their reasons - good reasons - instead of the salesperson's.

©Copyright 2007 Objective Management Group, Inc.

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Posted by Dave Kurlan on Mon, Apr 16, 2007 @ 10:32 PM

COMMENTS

In training at DKA, I learned to bring this up as a potential objection before the prospect does. I'll say something like, "There are a lot of email marketing services out there that you can use yourself and are very inexpensive. Why wouldn't you use those, instead of hiring us to do it for you?" The prospect usually responds, with something like the following: 1. Because you do the work for me. 2. Because you can get our message out to a larger audience. 3. Because you're an expert and I'd rather deal w/ a person than a service. 4. Because you can tie me into a community of professionals where I can network both online and face2face. Of course, this happens after they know what differentiates us. After I've asked them a bunch of questions about what they are looking for. But, by bringing it up in advance, I make them tell me why they wouldn't use the other cheaper "commodity" service. If they bring up price at the end after I've quoted them my price, I can ask them if it is still important to them that "I do x".

posted on Friday, April 20, 2007 at 12:40 PM by peter caputa


Comments have been closed for this article.