How often do you fall into a price quote trap?

How often does this happen to you?

Are you making calls and all too often whilst you are introducing your product or service, the prospect asks you ‘what’s your price?’

A big mistake that sales people make at this stage, [I know I did when I started out] is to start quoting prices far too quickly. At this early stage you risk losing the sale, as the prospect isn’t focused on how the product or service can really benefit them.

We need to get the prospect to focus on the benefits at this stage and not the price.

“I would like to quote you our best price, and I can ………..when I know more about your situation” or………

“…when you tell me what results you are looking for,” or…

“…. how many you usually buy?” or..

“…when I have a better understanding of your requirements” or…

By saying this you will learn more about their needs and objectives and you can talk about the value they will derive from your product or service before you get to talk about price. When we buy goods and services, we calculate if the value is greater then the price. If it is we consider it to be ‘good value for money’.

We should also ask questions regarding the importance of price to them.

“What is your criteria for making a decision on this?”

“Apart from price what else do you consider when making a purchase?”

Quoting prices for purchasing departments, procurement or ‘professional buyers’

Quoting prices to large organisations is very different from quoting to small companies. Buyers within schools, hospitals, local authorities and major companies spend their days calling suppliers trying to get the bets prices for their goods and services. Even if the business is not won or lost on the price.

Price will always have a part to play in their decision making process, along with delivery timescales, quality, service and availability.

Two very important factors to bear in mind when quoting are:

  • If you discount too early you will have no negotiation flexibility later
  • Buyers for companies are measured not so much on the price they pay, but on how much they can save.

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