Hey hey! There’s another awesome audio clip for you to listen to!
When it comes to understand the issue around price, there are three crucial elements, which need to be understood.
The first element is “PRICE”. This is the amount of money, which needs to be exchanged for the product or service.
The second element is “COST”. This is the amount that the consumer will need to pay in the end, if they make a wrong choice. For example if they choose the cheapest option and have to replace the product within a very short space of time. The price is low, but the cost over time is high.
Finally the last element is “VALUE”. This is the expectation on the part of the consumer that they will actually get what they pay for.
Most consumers believe that they want to pay a low price, when in reality what they really want is value for money and no risk.
Consumers will pay any price they deem fair, if they receive either exactly the value they want or more value than they expect.
Have you not fallen prey to making a purchase on a sale, when the price you are asked to pay, is far lower than the perceived value the product brings?
Well your prospects and customers are no different. Show them the intrinsic value your product or service offers is higher than the price you expect them to pay and they will buy from you with confidence.
The secret to be successful in sales is to know the distinction between low price, low cost and Real Meaningful Value and to know exactly what you need to do to neutralize risk, in the mind of your customer or prospect.
Once you know the true value your product and service offers to your customers and you can clearly describe this to them and remove any perceived risk they may feel.
Selling is no longer about lowering the price to close sales price, but becomes all about solving problems, meeting needs and offering the greatest value for money.
The distaste of poor quality lasts far longer than the tantalizing attraction of a really low price does.
Neutralize any perceived risk your prospect feels, show them how the value you offer exceeds the price you expect them to pay, they become loyal customers and will buy with confidence, every time.