The most difficult question at the first contact with a client is the question of price. It happens due to the fact that the client wants to find out the cost of the transaction as soon as possible. The seller thinks that when he announces the price, he will lose the negotiation.
The classic techniques of avoiding price presentation do not work.
There are no problems with discussing the cost when the client’s need is identified, and when the client has learned all about the benefits of the offer in advance and is ready to buy at the best price
. But when the client still does not know all the advantages, and he does not burn out with the desire to purchase a product / service, sellers start to use price hiding techniques. Usually these are:
The teachers of sales trainings advise not to indicate the price before it is formed. They recommended that you ignore pricing issues until you are ready to discuss the client’s investment, but according to research from HubSpot this is still not worth doing. Off-topic discuss is not what the spoiled online shopper wants to hear. It annoys them.
For example, "Our services will clearly cost less than a million dollars" or "How can you get the cost of the operation from the dentist before you get tested?"
Unscrupulous salespeople say they have many options and need to clarify the customer’s needs before providing a price tag.
Price range based on the average ticket of a trade or the upper and lower bounds.
Such a response would seem to move the deal forward. Selling without the risk that the client will not be overwhelmed by too high a price, but in practice this works poorly or does not work at all.
Why You Shouldn’t Postpone Price Discussions?
Buyers get very annoyed when sellers shy away from answering a simple question about price. We know all about price manipulation technology and will not succumb to cheap tricks.
There are about 30 effective actions of sales managers that are needed to successfully complete a deal. The first and most important of these is the principle of openness:
The seller gives comprehensive answers to my questions, supporting them with information that is relevant, timely and useful.
Clients are not satisfied when the manager starts to avoid answering. They need a specific answer, they want to know how much this product or service costs if he decides to order right now.
When a price or discount question is not answered instantly, customers suspect that you are wasting time collecting personal information and want to quote a higher price for your product, luring the customer into a maze.
This suspicion forces clients to defend themselves. The manager defends himself, when he does not give an answer to the question about the price, the client defends himself in response. It turns out that an attempt to further collect information about the client’s needs is very difficult, because the client does not want to give you this information. Without this information, according to the usual scheme, you will not be able to tell the client the price that will suit him.
Conclusion: it is ineffective to avoid answering the question about price. This leads to mistrust on the part of the client, a barrier appears, which is then difficult to overcome.
Most companies have multiple decision makers. If you are negotiating with one of these persons and this is your first meeting, then during this meeting you can only start collecting information about the needs. A cursory estimate, at best, gives the same approximate price. So why not save time and inform the client of the preliminary cost immediately - right at the start?
How to talk about price correctly.
While most sellers hesitate to answer the question about the best price, you name the price right away. Your services are now automatically distinguished from those of your competitors. It will also mean that you are on the same side with the client, and you are not ashamed to name the price of your products.
There will be a response from the client! Since you openly provide him with information, then he will act in the same way. You will receive better and more important information faster and will be able to use it in order to indicate more value for the buyer and subsequently offer him more by right using his trust.
To answer the price question as well as add value, try one of the following strategies. Communicate with the buyer openly, directly, confidently.
- 1. Price + question: "The preliminary price is XXX and includes YYY. What criteria, other than price, will you use to make the final decision?"
- 2. Price + Benefit: "The preliminary price is XXX including the YYY option. This means that you can get ZZZ with a surcharge. How important is this opportunity for you?"
- 3. Pricing + Personalization: "The preliminary price is XXX for the YYY offer. I think RRR is the right offer for you because you are part of our community."
- 4. Price + time limit: "The preliminary cost will be XXX, and we can fix this special offer for the next two days. I see that the issue of price is important for you. Is this a good price for you? "
- 5. Price + budget clarification: "The preliminary cost is XXX. Please tell me if this amount fits into your budget? And how does it compare to the proposals of competitors QQQ?"
Note that "best price to buy"
comes first in each of these offer options. The buyer asked about the price, and you gave the price right away. Further, by discussing the price, you can steer the conversation towards the value of the proposal. Due to this presentation, you will feel confidence in your words, the absence of hesitation or any catch. This is as important as the price itself. Finally, notice the term “base price”. Until the price is fixed, use this term to indicate that you are willing to change the price in one direction or another.
That said, the use of the term “starting price” is not an absolute defense against the fact that you hastily name the price, and then you will have to sell at a disadvantageous price. Think one step ahead of the consequences of an action.
When answering a question about price or discount, keep one thing in mind: no one asks for price unless they are interested in buying.
Pricing Discussion is a signal that a customer is ready to buy, rather than an objection. Your goal is to take the conversation with the customer to the point where they are talking about price. Further, using the strategies proposed in our article, you can announce the price and take a step towards the sale. We wish you that this material will positively influence your negotiations and speed up the customer’s purchase decision.