Some timely thoughts on this subject near and dear to all our hearts and our wallets, especially in these economic times:
Price too high!
What it really means is that the presentation was too low. If the customer's perception was that this costs too much money that means one of the following:
1. You have commoditized your product. If your customer perceives your product as a commodity like everyone else's, and then the price will become the determining factor. You must differentiate your products from all the others. Brian Tracy recently stated that "94% of all sales in America today are non-price sales. Price is only a factor when a product is a commodity. "If you had a choice between a new Kia at $10,000 and a new Lexis at $12,000, which would you buy?
2. Price objection actually is not true, but sales person believes it. Three years ago, I decided to buy a Jaguar XJ8 convertible. That was the only car that I wanted. I went to three different dealerships and negotiated the best price with each of them. I then returned to the first one. I wanted to do business with this one because of a referral, and they actually had the best price. I sat down with the manager and stated that I wanted to buy from him, but that price was too high. Was I lying? No, I was negotiating. I actually would have paid his price, but I was able to get him to drop his price by another $500.
A psychologist once told me that the opposite of love is not hate, that hate is part of the same emotion. The opposite of love is indifference. Now that struck a note with me. If a customer is indifferent about your product, doesn't it? In the hands of any true sales person that means a sale!
I was consulting with a company that sold their windows at $1,000 each. When asked the number one reason why their customers did not buy their product, they said," Price is too high." In working with companies that had windows at $400 and $700, guess what reason was cited for customer refusal..."Price too high." In fact, I was working with a company in Canada, that charged only $300 Canadian dollars (which was roughly $180 in U.S. dollars), and they said the main reasons customers were not buying their product was the "price was too high."
Of all the above companies, guess which one has the lowest closing sales? You have it --- the Canadian company was only closing 22% prior to a visit from us.
Price tends to be more of an objection in the mind of the sales person, than that of the customer. If your sales people do not believe that your product is worth the money, Fire Them! Sales people must sell from conviction. They must believe that if the customer does not buy from you, they are making a mistake and will not be buying from anyone else. If the sales person does not believe in your product and value, then they never can be great.
It is in belief that the true power of communication lies. As the bible says, "Everything is possible for him that believes." It is conviction that transfers to the customer. Yes! To be successful, you must believe in yourself, and you must also believe in your company and product.
Halos Marketing Group