Know Your Competitors
I went to a very high-end retailer the other day and when I asked about their competitor’s products, they said they didn’t know what their competitors offered.
What do you think I immediately did after leaving that place? I went to their competitor’s store to shop.
I’m always up to date on my competitors and so are the people in my office who are selling my training materials.
We frequently get asked about how our products compare. The reason we know our competitor’s products just as well as ours is because I want to be able to show how I am better by using direct comparisons.
Would you rather have a customer leave your store without making a purchase to go shop around or would you rather have done the shopping around for them?
That’s exactly what you need to do for a customer. You need to show them that you know every aspect of your product as well as all your competitors.
Then you can sell them on how yours is the best.
With the internet at our fingertips, customers have gotten spoiled into thinking that they can always get a better deal somewhere else. You need to be able to not only help them feel as if they’ve already shopped around, but that you are indeed the best deal!
If Price is an Issue…
If the person I’m working with can afford the product, but isn’t buying and continues to focus on the money, I realize this buyer has other concerns.
While your customer may be objecting to price, know there is something else you might not know. He or she is thinking…
- Is this the right product?
- Is there a better product?
- Is this the right proposal?
- Will this solve our problem?
- Will I use it?
- What will other people think about my decision?
- Am I going to really use and enjoy this?
- Will this company take care of us?
- Am I better off buying something else?
- Will something better come out next week?
- Do I know enough to make a decision?
- Is this going to be a mistake?
- Is this person going to let me down?
When these other questions are handled, the price will no longer be the issue.
Let’s say a man is buying a birthday present for his girlfriend. He finds something he thinks she will love. You tell him the price and he says it’s more than he can afford.
What he’s actually saying is that he’s not completely sold on that product. If it’s too much for that ring, he either doesn’t love it himself or is not sure she will—or both.
You have to get the right product that solves all of his problems. Address other concerns and price won’t be the big issue.
You can justify the price with other inventory
Don’t make the mistake of offering something with a lower price when you get a customer making price objections. This is not a way to resolve the money problem.
When you move the customer down to offer something cheaper, they are actually more likely to like the product even less than the first one. This will cause your buyer to believe you don’t have a solution.
Instead of moving them down, try moving them up. This will get the customer thinking in terms of value, not price.
This will also determine whether the price objection was even valid or not. If a guy is looking at a $6,000 ring and objects to the price, show him a $9,000 ring. The $6,000 ring may become more attractive to him.
Buyers are more concerned about making a good decision than how low the price is.
What’s the worst that can happen by moving someone up in inventory?
- He will look at something more expensive, which means he wasn’t committed to the original product.
- He needs to move in the other direction, something cheaper. That makes the price objection valid.
- He looks at the more expensive item but sees value in the original item.
Exhaust your inventory, not your price. You are losing just as many customers to more expensive products as you are losing to less expensive products. Your buyer would rather pay more and make the right decision than pay less and make a mistake!