12-04-2014 11:26 AM
How do you respond to this?
My answer last week when posed this question was "Without knowing what my competitors are offering you, it is very difficult for me to answer that question. Why don't we get together and review the proposal..."
12-04-2014 12:56 PM
it's a perception problem.
12-04-2014 02:34 PM
I put together a pitch that i called my 'value proposition', which explained why my product was of greater value and thereby cost more as it has more features/benefits.
12-08-2014 11:01 AM
Like AlanSmithee said, its about value prop. Know who your competitors are, and know what sets your product apart. There should be a valid reason yours costs more; higher quality, more features, etc. Everyone is selling a product; sell value.
12-12-2016 05:48 AM
I had this question come up again last week. "Why are you so expensive? You're much more than your competitors..."
I asked what other proposals they have received (and from whom) so I can compare and explain the differences, and they grumbled. I think it's 50/50 as to when this is a real question and when this is just a bluff to get better pricing
08-02-2017 08:15 AM
If you don't know who your competitors are, what they are offering, and what the differences are between your offering and theirs, then you need to do some research and learn the answers.
If you sell on price, then be prepared to slash your margins and work for less.
If you sell on value, then that question about price should very rarely come up. And when it does, you've already given them the answers and you just need to remind them.
You're right, sometimes it's just the buyer doing their job to try to get better pricing. But, if you've done your job properly, you've already answered that question and can easily respond.
08-03-2017 07:29 AM
You're correct. I don't know what you sell, or to whom. I made no assumptions that you don't know how.
I was simply stating my point of view in response to your question. Perhaps I should have used one and they instead of you in my response. It seems that you took it personally, when it was intended as general comments. For that, I apologize.
08-03-2017 07:57 AM
@PincheChinoThank you. No harm done.
I run into this issue quite often - I am in the position of working with businesses that don't generally understand my products/services. I am selling a modern solution to a market that is still using a model that became popular in the 1960s, so in most of my sales discussions I need to include an education component and explain to them that just because they found someone cheap to keep their old system running doesn't mean they should keep using their old system.
08-03-2017 08:26 AM
@RoyGBiV76, I am in the same situation as you. We have a unique offering in our industry that results in skepticism at best, and outright dismissal at worst, from prospects. And it requires a lot of educating to explain how and why we are different.
Does the price issue come from the decision-makers after you've educated them and "sold" them on the concept? Or does it come from the buyers, after they have been charged with looking into purchasing?
If it's coming from the buyer, then they are just doing their job to try and get lower pricing. Here's how I've handled that in the past.
Buyer: Why are you more expensive than your competition? I have a quote from them that is half your price.
Response: My competition is offering you older technology that does not have the same capacity as my system, and cannot be expanded to accommodate future developments and capacity requirements. Give "decision-maker" a call, and ask him if he wants the best system on the market, or the cheapest. If he wants the cheapest, then I recommend you call my competitor.
That order came through 20 minutes later at the full quoted price.