Still struggling to sell your services? Clients telling you that your price is too high? Here’s everything you need to know to overcome price objections.
Is $500 a lot of money? You can’t answer that outside the context of what you’re getting in return, can you? As a freelancer or business person trying to sell your services, you must put your price into its proper context. If you don’t, your prospects will.
Do higher prices mean less business? Or can increasing your rates actually bring in more business?
Last week, I explored the idea that raising prices can actually increase business. To many business owners, this is counter-intuitive. Most believe higher prices means less people will do business with them. But is that really the case? Some people have too much business because they charge too little. Others don’t have enough for the exact same reason.
I’m conducting some intensive training for the lead generators I manage and oversee, based on curriculum from appointment setting expert Scott Channell. I’ve broken the training into four distinct phases. Although this is specifically geared towards cold-calling, the steps in this process apply to any type of marketing you do.
The first step in the process is What to Say when you have a decision-maker’s attention. Whether that’s over the phone or on your web site, you’re going to have to plan in advance what you’re going to say. If you don’t have something very compelling to tell them, you will lose them. Without the right message, even the person who has a need for your product or service will tell you ‘no.’
A company I worked for had a particular manager that I had never met. Despite that, I felt like I did know him because, whenever his name came up in conversation, the typical reaction I heard was, “He’s a real a$$*#%! hole.” After about the fifth or so time of hearing those exact words, I had begun to develop a very distinct impression about him. Like it or not, he had been branded.
In a SpongeBob SquarePants episode, Mr. Krabs sees a group of tourists outside his restaurant, the Krusty Krab. With dollar signs in his eyes, he hurries out to entice them inside. As they scurry past, he shouts:
“Don’t you want to give me your money?”
Needless to say, they continue on without giving him so much as a moment’s notice.
Whether it’s busy tourists or busy decision makers, no one cares about what you want or what you’re selling. That’s where a strong value proposition comes to the rescue. Jill Konrath, author of Selling to Big Companies, defines a value proposition as:
…a clear statement about the tangible business results customers get from using your product, service or solution.
I’ve been told by older reps how sweet it was to sell Yellow Page advertising “back in the day” (that being when phone companies had a monopoly on Yellow Pages). They tell me the typical sales pitch went something like this:
I’m here to sell you Yellow Page advertising. Oh, you’re not interested? Well, you will be. Here’s my card; call me when you change your mind. Oh… and the book’s closing in 2 weeks.
That’s how first half of their day was spent. The second half usually involved golf…
I’m conducting sales training all this week, and one of the things I emphasize early-on is selling on value, not price.
Now that’s much easier to do because we’re not selling a product that we paid amount of money for, or that the customer can get from the store down the street. We sell advertising, and the value in advertising rests on one thing, and one thing only: Will I make more money in additional revenue than I will spend on this advertising?
So if you sell a service, if you are an account, an attorney, a web designer, or an architect… then here’s how you can sell on value and avoid the low-cost limbo.
Sales and marketing gurus are always talking about value — that in order to have a successful product or service, we must “create value” for the customer. But what exactly does that mean?
While the theory is absolutely correct, the concept of value is subjective and nebulous. What is valuable to one person may be completely irrelevant to another.
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Thanks for visiting. I’m a Marketing Evangelist, Blogger and Sales Trainer.
I get excited about geek stuff. But I’m also passionate about helping people and companies reach their fullest potential and becoming wildly successful.
That’s why I love helping businesses figure out how to market (especially web marketing) and why I train sales people to be the best they can be at what they do.