The Price Trap
Do you find yourself talking a lot about price and cost? Is price very interesting to you, a new business partner or a client? Does cost or price seem to be a deciding or important factor? As a business owner, are all your thoughts about discounts and special offers? Oh dear, a big and common mistake.
You are probably stuck in “the price trap.”
This means that you are only discussing price and not the value of the product or service. You have been bulldozed by your client to admit that your products and services are exactly the same as everyone else’s products or services. That can NOT be true! You are now stuck in the price trap…a nasty unpleasant place with almost no room to escape. Sure, everyone likes a deal but good business is when both parties profit.
So, how to avoid the price trap?
Explain about the value and uniqueness of your product and service. A good differentiation statement helps a lot. Examples are: “Unlike other suppliers of xyz, you get xxx. Unlike other cafe’s, our coffee is xxx. Get the picture?
Ask more questions about what the client wants. Use the “what” word in all questions.
Use the YOU word….make the conversation customer-centric. Don’t blab on about how good you are….everybody does that.
Try and move the conversation from “cost/price” to “value.”
Talk with other successful business people and seek guidance.
If you think you have “commodity products” that really are the same as everyone else, you will always end up in the price trap and you will struggle to sell at a good margin.
BUT…Both YOU and I know your products and services will be different and may even be a lot better!
The hard bit involves letting your client know how and why they will be of benefit to them. This isn’t as easy as it sounds… so take advice or invest in some sales training. Mainly, just try and avoid the price question. It’s a really bad place to get stuck.
Avoid the price trap!