A story my grandfather told me one day when I was fretting over the competition cutting price.
“A business owner, age 98, laid dying in his bed when the image of GOD appeared before him and said to the old man, “Jacob, you have been a good honorable man all your life. You have never cheated nor taken advantage of anyone. You have always been more than generous in giving to your community, so before you come to heaven is there anything you would like me to tell you, anything you would like to know?”
Jacob though for a bit and said to GOD, “No GOD there is nothing.” GOD replied, “There is nothing you would like to know, perhaps what the future holds for your grandchildren and great grandchildren, or the future of mankind? Jacob thought and said, “Yes there is one thing I have always wanted to know.”
GOD said, “Yes Jacob, what is it? Jacob said, “What is the lowest price?” GOD thought for a moment and replied, “I don’t know. As long as price cutters are willing to cut prices, AND OTHERS FOLLOW THEIR LEAD, to make the sale it will keep going lower and lower.”
You do not have to be a victim of the price cutters - You do not have to be the lowest price to sell.
1. If you are going to sell the same product as the price cutters, sell at a higher price and SELL BENEFITS:
People shop for price, but they buy BENEFITS (what they get from the product and mainly what they get from you) - the services you provide for them the competition cannot or is not willing to give the customer.
I sell the same thing my competition does (sales training), but I get a higher price for it and I am hired more because I provide intangibles my competition cannot or is not willing to provide.
a. My 40+ years of experience in face-to-face selling and marketing. Most of my competition simply read someone else’s books and tells you about them.
b. Total audience involved presentation.
c. Fun and entertaining programs.
d. Customized for your needs.
2. Sell up: Stock and show the items the price cutters are selling but don’t sell them. (Don’t sell the Advertised Specials.) Sell up to the product that gives the customer more product benefits. And more profit for you.
People buy higher priced products and services when you sell higher price products and services. Not just offer them, but actively and aggressively sell them.
Look, if your customers only purchased the lowest priced products there would only be a few different businesses. The big box discounters. Look around, there are lots of business who do not cut price, do not give their products and services away. The big difference these businesses have are sales professionals, not clerks.
Clerk: Shows products, waits for the customer to say, “I’ll take it.” Takes the money and bags the products.
• Sell the value of the Benefits of the products and their business and themselves.
• Establishes and builds relationships.
• Asks for the sale.
• Sales professionals get the customer involved in the sale. They give the customer the feeling of control by giving them choices of products and services. Sales professionals ask questions to discover the customers’ real problems, needs and wants. Sales professionals listen for those problems, needs and wants. Sales professionals listen for opportunities to advance the sale. Sales professionals listen for closing statements the customer makes and then closes the sale for higher profits.
My personal favorites to sell at a higher price are:
1. Sell Benefits. A feature is the product/service and the components it is made up of.
The Benefit is what the customer gains from the feature. People buy BENEFITS. Sales professionals sell BENEFITS.
2. Choice questions. When you give a customer a choice between different products and different benefits it no longer is will they buy from you or the competition, it becomes what will they buy from you.
You control what your lowest price will be.