The Price Is Right
But what should reps do if the customer disagrees?
Your sales reps may run up against price objections-and it's especially difficult to compete against larger companies selling similar products or services at a discount. For advice on winning the price wars, we asked John Costigan, founder of John Costigan Companies, a sales consulting firm in Cary, North Carolina, for his insights:
- Build the pain. It's the salesperson's job to identify a prospect's "pain" and offer solutions. In other words, reps need to get prospects emotional about their business problems. When a rep can offer a real solution, price issues melt away. Says Costigan, "Price is everything when selling logically, and it's nothing when selling emotionally."
- Keep the leverage. Reps shouldn't make concessions without a commitment. If the customer wants a lower price, have your rep ask, "If I can, what happens next?" If the prospect has no answer, the rep probably wouldn't have landed the deal anyway. If the prospect does answer, the rep should find out exactly what needs to happen to move forward.
- Never match price. Costigan believes buyers make decisions for three reasons: the salesperson, the company and the product-in that order. If your company offers a better service and product, reps shouldn't need to match price.
4th of July Subscription Sale - Unlock this subscriber exclusive article and more for 20% off today.
Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 20% off an annual subscription today. Just use code SAVE20 at checkout.
Entrepreneur Editors' Picks
-
Tory Burch Built a Brand Around Empowering Women. Now Her Foundation Is Furthering Her Mission: 'How Do We as a Company Have a Positive Impact on Humanity?'
-
This Founder Had to Play College Basketball in Men's Shorts and Shoes, So She Launched an Athletic Clothing Company Named After the Now 50-Year-Old Title IX Act
-
Is Beyoncé's 'Break My Soul' the Theme Song of the Great Resignation?
-
You're Probably Falling for All of Amazon Prime Day's Psychological Sales Tactics. A Marketing Professor Reveals Them — and How You Can Actually Get the Best Deal.
-
Comedian Paul Virzi: 'If You're Not Authentic, You Have Nothing'
-
Struggling to Come Up With Creative Ideas? Try Doing This.
-
Picking a Winning Emerging Brand Is How You Get Rich in Franchising. Here's How to Spot One.