You can buy a gallon of milk at the grocery store for around $2.00. Or, you can buy that same gallon of milk at the convenience store for closer to $2.50 or more. That’s an increase of 25 percent.
You can buy an email-marketing tool for $19 per month (in some cases, even free!), or you can spend upwards of $1,000 each month.
You’ll find 99-cent coffee just about anywhere; but you won’t pay less than $3.00 average at Starbucks.
You can purchase a 50-inch TV for $300 or $3,000.
Why are people buying the more expensive item, when there are clearly cheaper options?
It happens EVERY DAY: we buy things that are more expensive than the competition. So, what makes you think you can’t sell your product or service because it costs more than your competitors?
I’d be willing to bet your prospects are spending more money on lesser quality products in your very own industry. Isn’t that frustrating? You know your product or service is better than anything else out there; but prospects are buying your competitor’s product anyway.
It’s all about the VALUE you (or your product or service) offer to the prospect.
The reason your competitors are outselling you with an inferior product is because they have shown a perception of VALUE to the prospect. Sure, price almost always comes into play; but rarely is it the only determining factor in a buying decision.
Your job, then, is to create more value in the eyes of the prospect.
During the sales process, it’s your responsibility to uncover what your prospect truly values. Is it speed of delivery? Is it quality of service? Is it convenience? Is it saving money? No matter what the answer is, you need to embed that value into your conversation.
If you can create more value for the prospect, you’ll sell more. But often, your “value” is NOT just about the price.
Sales guru Anthony Iannarino says, “Commanding a higher price means being different in way that makes a difference.”
Value comes from differentiation.
Your goal is to create perception of higher value by differentiating your product or service, and connecting that back to what the prospect considers valuable. What do you do differently and why? How does that affect the prospect?
When you go to the doctor with a headache that’s lasted two weeks, and she recommends an MRI because she thinks you may have a tumor on your brain, you don’t ask, “How much is that going to cost?” Instead, you say, “How soon can I get that scheduled?”
Why is that?
You respond that way because you realize the importance of listening to your doctor; you trust her; you see “value” in your doctor’s opinion; and you’re scared to death, so you’re willing to do whatever it takes to get the situation addressed.
The same is true for your business. You have to believe your product or service is the cure for your industry’s cancer. And, you have to show your prospect what you believe.
If you truly do not offer a good product or service, change it or get out.
All this is great, because “it’s too expensive” is only an issue in your own head. You have the ability to improve the perceived value to your prospect; you just need to do it.
However, this assumes you actually do have a product or service that has value. If that’s not the case (and you have the power to do so), make the necessary improvements to ensure you’re selling a great product or service. If that’s not an option, go find a product/company you CAN get excited about.
Prospects will know if you’re not convinced yourself of the value your products or services.