To me, it’s not a question of price, it’s a question of value.
What I say to people who try to negotiate with me is, if you want to spend less that’s fine, I’m sure there are people out there that are a lot cheaper than me, you will get what you pay for.
However, if you’re looking for the best product or the best service, and the greatest amount of value with the greatest probability of success, then maybe you should look at working with me.
Yes, I’m more expensive than other people and the reality of that is it’s because of the results that I produce and the value that I provide, and I can demonstrate that.
If you can’t demonstrate the value you provide then you might question it yourself.
Step one: Provide excessive value
If you provide excessive value and you can demonstrate that then you don’t need to negotiate. The price is what it is.
I literally don’t negotiate anything anymore, we hold true to the price and we convert at such a high volume because we provide the value and we back it up.
So as long as you can back up what you say you’re going to do, as long as you do provide the value, there is no need to negotiate.
Step two: Have the dialogue
That doesn’t mean you just say, I don’t negotiate that’s the price. You need to have the dialogue, you need to have the talk track and engage with the customer.
Often, when people are trying to lowball you on price it’s an indication that they don’t see the value for them to feel confident in the price you’re asking. So I suggest diving into talking about the problems, because solutions have no value.
Solutions derive their value from the problems that they solve so you’ve got to identify the cost of a problem that you solve.
If you can sit down with someone in the sales process and actually ask some questions like:
What is the cost of this problem per month? How many months has this been going on?
What is the cost of this mentally? What is the cost of this emotionally?
What is the cost of this physically within your family and within your health?
This builds a case and provides the evidence to suggest that what you have is worth a premium, and if you can do that, then people won’t question the price.
Finally it really just comes down to being able to dollarize the problem that they’ve got, so when they do try to low ball you, you can clearly back it up.
I’ll give you an example.
Say you’re solving a $50,000 problem for $5,000, and someone tries to low ball you. You can say, “Okay, John, I’m a little bit confused. We’ve already discussed that the problem that you have has cost you $50,000 in the last 12 months, and the solution that I have is only $5,000 which is incredibly, incredibly cheap and economical in comparison to a $50,000 problem. Now you’re wanting to low ball me at $2,500?
Something doesn’t make sense about this. I’m offering to solve a $50,000 problem for just $5,000 and as far as I’m concerned, that’s a bargain, what am I missing?”
So, by asking that question it’s gonna give you some feedback and some information that you can perhaps loop back and fill in the blanks for price sensitive customers.
The reality is it’s never about price, it’s always about value.
Latest posts by Kerwin Rae (see all)
- Are you loving too much? How to identify and manage codependency in relationships. - November 19, 2019
- How to develop resilience, discipline and a success mindset | Dan Lier - November 18, 2019
- The Social Media Wrap – 15th November 2019 - November 18, 2019