Don’t lower your prices to compete.

Value can be described as the extent to which a customer is willing to go to buy your product or service. This isn’t always dependant on price. Have you ever considered two products with similar attributes where one is more expensive; somehow you consider buying the one at a higher value believing it to be a better product.

Something can be seen as having value even at a higher price. The fact is, most people see a products price as an indication of its value. Something higher in price is more often seen as better quality or will at least hold its worth in comparison.

I spent years in the furniture sales industry, famously always in a 50% off sale; people would see the before and after price; but the first thing they would ask when you put a package together was for more discount. Lowering your price does not increase value, it actually looks to cheapen a product or service. The constant drone of customers saying, ‘If they’ve taken 50% off of the price, what’s wrong with it? Why aren’t they selling? Is it actually a cheap product?” Almost all wanting more money off.

How do you view goods that have had their prices slashed? Do you think, bargain! Or; are you questioning the real value of it? Did it sell at its original price? Why not?

The real issue about dropping your price is the perception your customers have of the original price and what the real worth of the product is. If you are willing to lower your price at the first request of the prospect, the viewpoint may well be ‘Well…I wonder how much more they will drop!’, ‘How can I get more money off?’

The discounted price should be for a specific reason not to desperately ‘close a deal’ or ‘make a prospective client happy’. YOUR product or service should make them happy. Dropping your prices to compete locally or at the request of someone (probably not that serious about buying) signifies that you don’t value your product.

Why not justify your price point, firstly to yourself then to your market? Be proud of yourself and what you offer, don’t be ashamed to value your time. This is how you as a business owner ‘Value-add’; answer the price objection before they get there. You have recommendations? Reviews? Show your prospect why you value your business. Build your value to a prospect so that the price seems to lower, even if it doesn’t.

If your main objection is price point; go the other way, increase your price. The customer or prospect will ask for a discount anyway; right? VALUE YOURSELF AND YOUR PRODUCT!

As a sales coach this is what I’m constantly pushing people to believe; you have a good product and you believe in your price, so let’s sell it at this price. I just have to tweak a few things within the sales plan they had, a little help with their sales process and strategy and they suddenly believe again.

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