Selling Against A Lower Price: How To Win The Sale

"I can get it from XYZ Corp for 8% less.  Can you meet their price?"  We hear it far more often than we'd like.  What's a sales pro to do?

Your manager would say, "You haven't adequately sold the value of the product."  To some extent that's true (it helps them meet their goals), but we all know there are some people who will always buy on price, no matter what. What do you say to them?

"I never worry about my competitor's lower price; they must know what their stuff is worth.  What my product is worth is $X.  My product meets your goals of  A and B.  How many would you like?"  With this response, the competition is minimized, and you're back on track.  There is nothing your customer can say to this approach that will shake your explanation of the price differential.  All you need to do is take the order.  They may talk about budget, giving you an opportunity to discuss payment arrangements.  Don't sell on price.  You'll lose.

When your customer makes your competitor a topic of conversation, you need to change the focus back to your customer's goals and how your product helps to achieve them.  You're not an expert on the competitor, and even if by some chance you are, it isn't what you need to discuss to sell your product.  Nobody's goal is to have a 1/4" drill bit - the goal is to have 1/4" hole.  Stop talking about the tool, and start talking about the goal.

This "They must know what their stuff is worth" approach can easily be overdone and beaten to death.  When you say it, say it once, clearly, and then drop it.  You're not bad-mouthing with this approach, you're stating a fact.  If you are perceived as talking trash about the competition, your reputation and your sales are quickly going to be in trouble. Keep the focus on achieving goals, and close our sale. 

Build New Business in 6 Simple Steps

Your New Business pitch needs to have a plan, but not a script. (In some cases, your pitch will have some language you use verbatim in every sale. If you have disclosures, they are usually mandated to include certain language.) Strong outlines and agendas for New Business calls are very effective. Rote-memorized scripts are not. What follows are skills and dynamics to add into your outlines and agendas. Stay in control of the conversation to hit your agenda points, and use these tools to educate, excite, and close your prospect.

Start building a pitch sheet. The goal is to present your product in the context of your prospect's business or life. Each heading below should prompt you to add specific concepts, questions, or phrases to your sheet. From there you can build an agenda of how you’d like your New Business calls to run, and polish some lines for your pitch.

Feature – A feature of a product is something positive and observable or concrete. It will include something that sets your product apart, like “leather seats” or “lightweight.”

Benefit – The way in which the customer’s situation is improved by the product. “Added comfort” or “time-saving” are benefits. They define experiences, not something concrete.

Differential Advantage – The differential advantage is the reason your product is the right choice for your customer, as opposed to other alternatives. Ex: When it comes to rain gear, most of us would like to stay dry, with style and durability for our money. When we’re at Niagara Falls and getting hit with spray from the falls, the flimsy little plastic pullovers at the merchandise stands have the differential advantages of being on site, and inexpensive.

Probing Questions - To fully understand what products and services your client needs, you need to learn about their pain. You need to ask questions. What isn’t working? Why doesn’t it work? How does that affect their business? These questions are all about establishing the specific needs of your customer, and bringing those needs to the front of your mind and theirs. Make notes of the answers. Probing questions should be a major part of every sales call you ever make. Finding a way to discuss what your client finds to be a problem and then keeping them talking about it is the bread and butter of daily sales work. It tells you what to sell them. Depending on your product or service, you may want to set a minimum number of probing questions for each interaction. I always aim for at least three, even on a grip and grin visit, and there is no upper limit.

Focus on the problem/solution equation - Every product or service represents a solution to a want or a need. Focus less on your product, and more on the needs of the prospect. The right probing questions will lead to a sense of urgency on the buyer’s part. Encourage them to discuss how the solution will be implemented. The answer to any of the following questions can lead you to a solution-implementation conversation. What specific problems has the unmet need caused? How it will affect their life or business the longer their need goes unmet? Does this need arise often? How long has it been unmet already? How would it be if the need were met today?

Goal-setting – What are your prospect’s goals? It doesn’t matter if they seem to relate directly to your product at this point! Understanding what the prospect is working toward will give you more context for how they will make buying decisions. (If your prospect plans to sell their business within 5 years, and your solution will take 8 years to pay for itself, you may not want to emphasize the short term return on investment in your conversation.) Immediate, short term, and long term goals all matter to your current conversation. Of equal importance, they matter to your follow-up visits. Even if your prospect doesn’t buy today, you’ll have a relevant subject to discuss next time you talk – how’s that goal coming along? Remembering their goals (make notes!) and taking an interest makes you an ally, not just a supplier.

These steps will close more new business.  Incidentally, they'll also close more repeat business.  Commit to your agenda before you set foot in the door. Ask your questions, and present your product or service in the context of the client's world.  Help them see how buying from you helps them meet their goals.  You'll build your client base, and have more loyal customers. 

How Does Your Sale Flow?

Sales Flow.  We know it's important.  How do you develop one?  Let's get specific.

Sales Flow is the process used with the customer to result in the sale.  It's the difference between being a sales professional and being an order-taker.  (Professionals are in control of the process, and order-takers wait to be told what is being purchased.)  Sales flow always includes the same pieces, and what varies is the order.  What never varies is the sales professional stays in control of the conversation.

Omitting any of the pieces of the flow seriously damages your chance of getting the sale.  Even if the customer is chomping at the bit, desparate to buy.  If you don't get through the entire sales process you risk a buyers-remorse cancel, or worse, an unhappy customer who doesn't cancel - they just badmouth you for the length of the relationship.

So what's the flow?  These are the necessary pieces.

Interview - Probing Questions - Qualifying - Need Recognition
These are many words for basically the same thing.  You are questioning the customer about how they're meeting the product need right now, and how they've determined that it's time to talk to you.  Let's use the car salesman as an example.  "What are you driving now?"  "Is this car your primary vehicle?"  "What has you shopping for a vehicle today?"   "What's your dream car?" "What kind of driving do you do the most?" "Do you have anything in particular in mind?" It's particularly effective to combine this step with the "Excitement" step.

Establish Relationship
The reason a salesperson is involved in this sale is the product sells best in a relationship sale.  You need to create a positive relationship with each of your prospects.  Your personality needs to be involved - no robotic conversation here.  Notice everything about the customer that you can.  If they have a bumper sticker about fishing, ask them about fishing.  Let them be the expert.  Relate the attributes of the vehicles back to fishing.  Even if you personally hate fishing (or kids, or antiquing, or whatever they love) find questions that bridge the gap between their passion and your product.

Excitement - Drive - Desire - Urgency
A prospect who is not excited is unlikely to become a customer.  If you're selling cars and saying cars are a necessary evil in today's modern world, your chances of making the sale are much lower than if you're talking about the seat-of-the-pants thrill of feeling the car accellerate with just a flick of the gas pedal.  You need to generate excitement for using the product.  This is the difference between presenting features and benefits and creating urgency for the customer to buy.

Presentation and Disclosure
Features, benefits, and disclosures need to be presented consistently throughout the interaction.  (Features are important facts about the product or service being sold, usually ones unique to your particular product or service.  Benefits are advantages the customer will receive by purchasing your product or service.  Disclosure is making the customer aware of what most of us think of as "small print."  This is any agreement or assumption of liability between the parties involved in the sale.)  Weave the features and benefits through, touching on each one several times.  Touching on the disclosures only once, or providing them in writing instead of discussing them helps to keep the focus on the positive.  If the customer asks about the details of any disclosure, handle them as directed by your
manager.

Close the Sale
This is the part we all love!  The prospect becomes a customer, and commits to the purchase. This is the time to emphasize benefits.  Ask for the customer's business.  Thank them for their business.  Discuss things past the sale, like delivery dates or what the client will feel when they are in possession of the product.  This step also works well when woven through the entire sale process.  "Trial" closes keep your finger on the pulse of your prospect's excitement level.  Checking on what delivery date would be good, or what tow hitch fits well on this vehicle in the beginning or middle of the process can appear to be simple note-taking to the customer while subtly moving your sales agenda forward.