Marketing
The Price-Value Relationshipby Tim Connor
Most poorly trained salespeople tend to lower the price when they receive price resistance.
The price will always seem high to a prospect or customer if the perceived value is low. The key to effectively handling price resistance is to understand this simple, yet profound, concept.
People say they want low price, but what they really want is low cost. What is the difference?
Low price is what the customer pays for your product or service now. Low cost is what they pay for it over time. For example, if they buy an inexpensive piece of equipment to save money, and it is in constant need of repair because it breaks down a great deal, they may have saved money initially, but their cost over time will be much higher than if they had invested more in a better piece of equipment.
In most cases we get what we pay for. Buy cheap and you get less value or higher cost. Buy expensive, and you get higher value or lower cost over time.
What are you selling high value or low cost? Personally I would rather sell a high priced product or service than a low priced one. It is much easier to justify high price if the value is there, than poor quality and constant product/service problems.
Remember, the key to success in selling is building strong relationships. Poor quality, even though the customer saved money, is not in his best long term interests. How do you want to be remembered by your customers? Low quality or a good value at a fair price?
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Tim Connor, CSP, is a professional speaker and expert in the fields of management, sales, team building, and customer service. He's the author of 19 books and can be reached at 704-895-1230, speaker@bellsouth.net or www.timconnor.com.
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