Wednesday, 3 September 2014

5 Ways of Telling Client the Price and Doing It Right.



One of the most sensitive moments in a sales process is telling the price. The difficulty of the moment is mainly that one side wants to earn more and the other wants to save more. In majority of the cases after announcing the price, sales person gets into the situation of price negotiation because the product/service is the way too expensive, client needs a discount and starts comparing what is offered with less expensive etc. Following this we come to the situation where the whole deal can be lost.

I would like to present 5 techniques on how to announce the price to win the deal.

Technique 1
"Sandwich"
As we remember better first thing we hear and last thing we hear, this can be used as a bonus to say something in the middle without being noticed that much.
Same way you can say price without a discount and then with a discount to make a difference.

"You need to order flowers to congratulate a colleague with recent promotion? Great! This will cost you only 50 EUR and we can do that taking into account all individual wishes from you and your company, making sure to highlight the individuality of your colleague and corporate culture and on top of that all modern trends."

Technique 2
"Forbidden word - BUY"
Avoid using all words connected to financial aspects of the deal. Those words are connected in your clients mind with giving the money away, spending it. Nobody likes to give the money away. Use the strategy to persuading your customer that he is not spending money, he is investing it! Use the word "acquire" rather than "buy" in this case.

Technique 3
"Fork"
Offer your customer a choice (different packages, services etc.) with different pricing options starting with the highest one. You think the client with choose the cheapest? :) Normally they go for something in the middle!

Technique 4
"making Money"
Show your client he can earn something or save money having what you sell. Think on what saving can be made and have some options prepared in advance.

Technique 5
"Price division"
The amount to pay doesn't seem to be that high if you say price for one item/monthly/etc. This technique is widely used by SaaS/Cloud Serve providers/Sports clubs. Sports clubs say what you can get in one month in terms of activities for only 20 Eur a month however you have to buy the membership for as minimum as 6 months or a year. Or construction companies advertising the price for square meter.
The advantage of this method is mainly in using it when client is referring to a cheaper analog of what you offer.

"Yes our tyers are more expensive however they can serve you 10000km. This means that 1 km will cost you 0.05 cent only! You can buy the tyers from our competitor for 0.03 cent/km however it's not guaranteed they will serve you that long."