Price? Not #1.
You lost every sale because your price was too high? Nah...price is rarely the real reason. But, it’s the easy reason to give a sales professional who doesn’t press for hard answers.
We do customer surveys every week for our clients and each one shows that price is not the deciding factor. As a matter of fact, price usually ranks in the fourth or fifth position in the list of criteria buyers use. And that’s true in consumer and trade purchases.
Recently we did a consumer research project that took us into the grocery store aisle. One of the questions we asked was how much the consumer paid for a certain product. Only about 25% of them actually knew what they paid for the product. And, this was for a product they buy every week.
On the trade and manufacturing side, you’re thinking that it doesn’t matter when it’s a $2.00 box of spaghetti. But, even on the trade side, B2B buyers tell us that there are more important, or equally important, items than price. Usually these items are related to service. How responsive are you? How precise are you in your solutions? Will you take care of me? That’s what the buyer is asking. And, by the way, how much is the price? But if he doesn’t have good, solid answers to the first three questions, then price is a moot point. Because you’ll just cost him in the long run.
Talk price when you have to, but otherwise, prove to your prospect that you ’re the one.
Talk to you soon,
Kae Groshong Wagner
CEO, Founder — North Star Marketing
Award-winning Author, Speaker
Brand Consultant
CEO Advisor for Sales & Marketing