How do you sell if you have higher prices than your competitors?
Upnify Editorial Team - 27 de mayo, 2022
Whenever I ask a sales team what the main obstacle to meeting sales goals is, in unison the answer is almost always the same: price.
The perception is that high prices are a major obstacle to growth. "If only we could reach that one little problem, everything would be wonderful, because otherwise, we're perfect! The ideal of many vendors is: maintain the quality and all the benefits, but with the lowest price of the competition.
Each company chooses its business model. Some choose to offer standard products or services at a lower price; while others choose to deliver better quality and performance at higher prices. It's a cost-benefit ratio. Seeking the best of both worlds (excellent quality at a low price) is unlikely and financially risky. So how do you sell when you have higher prices than your competition?
Ask yourself why your prices are more expensive.
Make a list of every aspect of why your value proposition is more expensive. Higher prices in the vast majority of cases are synonymous of quality, better support and more benefits.
The fact of the matter is that you are probably not getting them in touch effectively.
A company may have compelling reasons (customer benefits) that allow its products or services to be more expensive, even if these reasons are not directly related to the product/service itself.
Professional profile of salespeople
A more experienced and professional sales force will enable customers to access more effective solutions in less time. An experienced salesperson who knows the products/services will be able to better solve a customer's challenge.
When things are going well, all companies are there. Let your potential customer know this, even if you consider a low probability of it happening. Good suppliers are known in difficulties.
For many products or services, especially in the B2B business, technical support can make the difference between average results and extraordinary results. Being able to access qualified people and state-of-the-art equipment makes a big difference when it comes to improving productivity.
What does it mean to a client if your company is ISO certified? Standardization of processes. The client has the guarantee that he will get a continuous and regular service, because there are serious procedures for getting things done. There is no improvisation, there are processes. You can differentiate yourself from the competition and give your customers a guarantee.
The 10, 20 or 30 years that your company has been in the market represent great benefits for your potential customers. Years of experience mean that you have probably faced all sorts of challenges in the past; that you are better prepared than your young competitors to solve problems.
Distribution and supply systems
Having the infrastructure in place that allows you to deliver the right product or service at the right time, in the right quantity and to the right place can have a big impact on your customer's profitability. For example, for many local companies this has been one of the key differentiators when competing against companies from China.
The ability to tailor your product or service to your customer's specific needs can make all the difference. One of the great advantages of SMEs over large companies is precisely the ability to customize their value proposition, offering not only a more direct and faster service with fewer intermediaries, but also the possibility of adjusting to particular requirements.
Although it should not even be an issue, some industries are threatened by unfair practices of their competitors such as tax evasion or types of contracting that do not comply with legal norms. Companies that do things the right way represent peace of mind for their customers and reflect a business philosophy.
This is the type of supplier many companies want to work with.
Not everyone will be willing to pay high prices (and that's okay).
There will be customers for whom your benefits or added value will be highly appreciated, while for others they will have no relevance, and that's normal. Understanding that not everyone is a potential customer for your value proposition optimizes your commercial management. Stop trying to convince those who do not appreciate your benefits and focus on identifying those who do, and communicate them clearly and consistently.
Remember, for those who do not appreciate your products and benefits, any price is high or expensive.
Instead of thinking about lowering prices to reach that market that doesn't seem to appreciate your benefits, think about creating a new product. But pretending that the same product with the same benefits serves both markets will end up disfiguring your positioning, making it irrelevant to both and more vulnerable to competitors at each end.