Articles
Published March 2003
Proactive strategies to minimize price objections
How do you compete when you know you aren't the least expensive in your area? How do you compete in an increasingly competitive market globally? How do you compete with a big box store? Here are a few areas that will help in this regard.
Strategic Value Analysis: Taking the time to find out a bit about these four areas will help you build a strong foundation and relationship to better service your customers. Better relationships will take the pressure off the price factor in the buying decision. The more you know, the better you can apply that knowledge in serving those who need what you provide.- Market Analysis
- Competitive Analysis
- Self-analysis
- Customer analysis
Outsmart the competition: Use your brains and look for ways to better 'service' your customers. Find ways to provide services or value-added products that your competition doesn't.
Use all your resources: Being lean and mean in using your resources can help you keep your overhead in line and keep your pricing competitive. Using your resources fully allows you to better serve as well.
Decide on all organizational needs: Taking time to streamline your operation. Keep it simple! This will help your staff provide the best service possible. It also allows your customers to see firsthand your commitment to giving them value for their dollar.
Work to generate end-user support: If you are in the position of being a supplier – your customers are really your customers' customers. How can you help your customers by working to reach and teach the end users? Become a drawing point for your customers.
Value-added Checklist (10 minimum - go for 20)
Bundling: How about making what you offer more valuable by combining products or services to allow your customers lots of options. What types of bundles can you offer?
Proactive probing: Take time to find out what moves your customers? What keeps them up at night? Ask questions and respond to what you learn, by adapting or changing your business. This is one way of keeping what you offer current, valuable and viable.
Reinforce value: Everything you do should be focused on reinforcing the value in what you offer. What is the true value of what you offer? Warranty, service, selection, delivery, options?
Sell intangibles: Often the true value of what you sell is based on things that can't be shown or proven until needed, as above. Do you have a better warranty? Do you offer better terms? Do you offer a better selection or stocking? Do you offer expert advice or consulting? Do you offer delivery and installation? Let them know!
Presentation ideas: When you get an opportunity to present or share about your business or products – I'd suggest looking for ways to incorporate the following areas. You can be a great spokesman if you do.
How can you…?
- Demonstrate earnings
- Cut their costs
- Go for agreement to product first
- Carefully choose your words
- Use proper sales terms instead of jargon
- Sandwich the price - focus on value (good, better, best!)
- Price with benefits summary
- Cost as a 'mere' fraction
- Minimize the cost-to-own
- Analogize
- Use testimonials where ever possible
- Think and talk 'long-term'
- Present in its best light
The effort will pay off – BIG TIME!
© Copyright 1999-2008 Bob 'Idea Man' Hooey - Ideas At Work (780) 736-0009 Bob's Ideas At Work! have been successfully applied by thousands of professionals across North America. He is the author of 10 books in addition to e-publications and his articles appear in consumer and trade journals. Visit his website for more information: http://www.ideaman.net
Click here for Bob's Bio Page: http://www.canadaone.com/bio/bob_hooey.html
