A big mistake made by business owners is selling their products and services at a much lower cost than the market they operate will actually sustain
In the current economy most marketing efforts seem to be focused on price as the most important buying position. A common reaction is to drop the price to get a client. Huge mistake!
Making ‘Lowest Price’ your marketing strategy means that you will lose money. Ultimately you will have to sell more and my question to you is ‘at what direct cost to the business?’
A strategy of ‘Lowest Price’ also puts a strain on cash flow which is for me, the sanity of any business. It still concerns me that some businesses knowingly operate at under a 10% margin. For the sake of some external support and advice, this situation could be improved relatively quickly.
When someone objects to your price they are not saying ‘I don’t want this!’ what they are actually saying is, ‘Show me where the value is so I feel comfortable about paying the price you are asking.’
If someone objects about the price of your product or service, acknowledge it without apology, fear or going on the defensive.
Respond with something like, “Yes, our prices are higher than some of our competitors and I’m glad you brought this up because now I can share with you why that is.”
Then give your reasons explaining the value added experience that your customers receive. What makes this strategy so powerful is that their objection about your price is actually giving you permission to justify them.
Most businesses have not recognised that they do actually have Unique Selling Points USP’s; things that make their product or service special. Learning how to tap into and then communicate this will truly set them apart from their competition.
And for those businesses who are working towards an ‘outside-in’ customer led innovation and culture approach for the development of their products and services; well they are on their way to marketing utopia.