Know your competition and understand what their price includes or doesn’t include.
Offer more value for the dollar. What should be sold is a solution, not a product. Of course, you deliver a product or service but what is the value to the customer? What challenge or issue does it solve? Look at it from the customer’s perspective and position your offering to best fit that customer need.
Ridiculously Low Price
I’ve had situations in my career where a customer shared the price from my competitor and it would be ridiculously low. In those cases, I honestly didn’t know if the customer was trying to truthful or if my competitor was selling at a loss to get in the door, but it really didn’t matter because I would call the bluff with a response something like this. “Wow, that is a tremendous price you negotiated with XYZ company. I suggest you buy as much as you can at that price level while it’s available.”
I would usually get a puzzled look from the customer. I would smile and start closing up my things to leave and sincerely follow with, “I suggest you buy as much as you possibly can at that price level while it’s available. You see I’ve been in this business for a long time and I understand the cost of these products so XYZ cannot possibly make any profit at that price level. The more they sell at that level the sooner they go out of business, and that is good for me. Although I admit, it may be bad for you from a product support standpoint. Anyway, thank you for the opportunity and if you don’t mind I will follow up to see how it all works out for you.”
Sometimes you need to be willing to call their bluff and walk away from a deal to gain their respect. Maybe earn their business another day.
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