Most poorly trained salespeople tend to react with the prospect of price resistance by lowering the price because they feel that they must do this in order to win business. Believe me there is much more to treat the price resistance than is evident in the first round.
What price will always seem high to the prospect or client, given the value of the vehicle is low. Price resistance is one of the best ways to get a feel for the value your prospect has for your offer. If price resistance is low or non-you can find pretty sure they have a high perceived value of a product or service.
key to effectively handling price resistance is to understand this simple, yet profound, concept – people generally say they want low prices, but what they really want is low cost. What is the difference?
Low price is what the customer pays for the car now. This is what is deducted from their checkbook and deposited into yours. Low cost is what they pay for the car over time. For example, if they buy a cheap vehicle to save money, but it is in constant need of repair because it breaks down frequently – they had low prices and high costs. While they may have to save money in the beginning, their costs over time will be much higher than if they had invested in a better car.
In most cases in life we get what we pay for. Buy cheap and you get less value or higher cost. Buy expensive and you get a higher value or lower cost over time. Granted this is not true 100% of the time, but it is a rule.
Price is what you pay for something. Cost is what it costs you in time
What are you selling -. High value or low cost? Many salespeople would rather sell higher priced vehicles, but low prices alone. It is much easier to justify a high price if the value is there, but poor quality and constant product / service problems when value is missing.
Remember, the key to success in selling is building strong relationships. Poor quality, even though customers save money, is not in the best long-term interests. How do you want to remember with your customers? Low quality – or good value at reasonable prices
Consider for a moment the simple thought – if two people want to do business with them will not let details get in the way. By the way, the converse of this is also true.