In sales, money will find what people perceive as valuable; not the lowest price. If a prospect isn’t completely convinced of the usefulness of your product or service, that person will elect to do something else with his or her money.
A lower price won’t necessarily sell your product. A lower price will not get your clients to buy your product if they aren’t fully sold on its value, excited about it, and confident that it will solve their problems and/or make them happy.
Unless you are Wal-Mart or The Dollar Store, whose entire business models are built around very small margins and high controls on their inventories, the “lowest-price” approach will fail you. Selling on price is an indication of a weak-minded and poorly trained individual or organization. Plenty of organizations that have used the lowest-price model have filed for bankruptcy or closed their doors.
A lower price can convey a reduction in value to clients. Learn how to sell your product and justify the price by building value, selling yourself and your company, and creating a wow experience.
If I sell you a book for $30 and you give me $30, the reality is that you either believe that the book is worth more than $30, or you don’t value your $30. You might feel like the book is worth $30, but because I didn’t really convince you that it is worth more, you may decide that your money would be better invested in dinner with the family. People will not give you any amount of money if they think what they are getting is worth exactly that much. They will only do so when they believe that what they are getting is worth much more!
Here are 5 ways to enhance value:
1. Do a better job of identifying what the buyer is trying to accomplish with your product. “What is the number one thing you want this product to do for you or help you do?”
2. Demonstrate how your product’s worth is greater than the price you are asking for it. Take the time to creatively build value that exceeds price and ensures that the prospect is making the right decision.
3. Demonstrate how your product will sufficiently solve problems and why the customer will love it. People buy for two reasons: (1) to solve a problem; and (2) for love and to feel good. If they don’t believe one of those two things, price will not matter. “On a scale from 1 to 10, how would you rate this product?”
4. Be sure that the proposition you are presenting is within your customer’s financial means. Having too much of a product is the fastest way of forcing you to cut your price.
5. Become thoroughly versed in the fact that price is a myth—one that is disproven every day when people give up their money for something they desire. Check out my book, Sell or Be Sold, in which there is an entire chapter on this topic of the price myth, how it is a destructive belief, and how it is destructive to creating your own economy. You can find it here.
Be great, nothing else pays.