Over the years many salespeople have been unable to close deals mainly due to improper price negotiations. Most of them Focus a lot in convincing the prospect that the product or service they are offering is offered at the best available price. They fail to realize that a log goes into deal closing than price proposition. Although price can be an important factor to consider in the eyes of a buyer but it is not the most important one.
In this article we will explore all possible methods to professionally shape your price proposition so as it resonates well with your next and future prospect. It is noted that at least 40% of failed deals usually arise due to a misunderstanding in matters price. How now can you understand your shortcomings and drastically improve on this important topic? Follow through as I explain explicitly in details.
Price is the amount of money expected, required, or given in payment for a good sold or a service offered. It comprises of the value of skill input, time taken, and resources consumed to produce a good or service and also sales taxes according to the nature of business. At times the price is adjusted according to various factors that contribute to the general business operations and hence different businesses offering same goods and services could offer different prices for similar products.
Salespeople have the obligation to help drive sales for their businesses. Therefore, according to the nature of business and product being sold they have to sell their products at the given price range which has to cover all the costs of operations and profit margins. This is essential as it enables businesses to continue producing to satisfy the market needs. Within the set price and number of products there is usually a threshold to which the price must not exceed either above or below. Having this in mind the salesperson has the flexibility to offer prices in accordance with the set limits.
The pricing system being well known by the seller is a mandatory requirement. However, the consumer of the product or the customer/ client/ buyer is the one who has to meet the cost so as to be able to acquire the offered product. The buyer does not know about the pricing system and guidelines. They have a liberty to choose products to buy, the quantity and from which vendor to purchase from. Therefore, it is your role as the salesperson to convince them that your offer is the best available. Not only that you should aim to ensure that they will always be seeking the products from you only so as to keep out competitors eying your customers.
For your prospect to be comfortable with your product’s price they first have to be satisfied with the value they will receive from the offered product. This should be your main concern area, to communicate all the benefits that they will enjoy when they purchase your product. when the buyer is fully comfortable with the product they are being offered, price would not be an issue. You would have passed the initial step and your deal would be closed within the shortest time possible.
If the prospect likes the product but is not well convinced of the price set to it, now you may need to advance your pitch to touch on what the competitors are offering to place yourself as the best seller for the service or product. You may also need to include any after-sale services that you offer like installation and warranties where applicable. This is important as it gives the prospect the guarantee that you are trusted vendor and that you care not only about the quota but the customer satisfaction.
Other guidelines that should be considered are the discount levels where applicable. You should be familiar with your company’s discount rates. This is essential as it gives you the chance to offer the prospect a window as to how much to buy so as to save on the purchase. In return it rolls out to more sales.
Sales negotiation is a vital skill in prospecting. If you need more tips on this you may also check out this amazing article to help you gain a upper hand when negotiating for price. For these and more interesting sales tips visit our website at www.ecentsmarketing.com.
Author
With a passion for web development and digital marketing, George Munyui brings a unique blend of creativity and technical expertise to the digital world. As the mastermind behind this website, George Munyui thrives on crafting innovative solutions that drive online success. Whether it’s designing captivating web experiences or executing strategic marketing campaigns, George Munyui combines creativity with practical skills to deliver outstanding results. When not immersed in code or marketing strategies, George Munyui is always exploring new trends and technologies to stay ahead in the ever-evolving digital landscape.