How to Handle the Price Issue - Part 2

Yesterday sales trainer Sam Manfer shared some tips on how to handle the price issue. He's back today with some more tips you can start using right away.

1. Ask how low the price has to be. That is, below what number, or in what range does the price have to be. If the buyer only knows how to sell low price to his end-user, then you may want to show him how to sell a higher price, by doing the above suggestions. Be careful. Contractors say this all the time, and I've never met a contractor that said he made money on a job.

2. Get to the final final decision maker and those in between. Subordinates want the low price based on what's important to them, not necessarily what the top people want or want to avoid, i.e. delays, image, risk, etc

But, you'll have to give the subordinate the assurance you can come in at the lowest price (whether you will or not) for what he wants before he'll let you talk to his boss or higher. Therefore, you say, "We can get it to the lowest price, but before I can give you our final bid, I have to talk with the other decision makes to be sure of their expectations." If this person flinches, it a big red flag, meaning he hasn't bought into you yet.

This is also a good strategy to use if you feel the buyer just wants a price and to get rid of you. Agree you can probably give him the lowest price, but before you can commit, you'll have to talk with others. You'll learn if he's serious.

3. Ask what will happen if no one can meet their price expectation. Obviously if they have a big enough budget, there will be a lowest price. However, if they can't afford it, then they'll have to make adjustments, and you'll learn what's important and what's not.

4. Ask if she always selects based on low price. Most people will say no. So ask, "What are the criteria that make you leery of low prices?" If it quality or capability of those bidding, ask, "What would disqualify a supplier?" or "What capabilities do you use to qualify a supplier?"

Bottom line, it's all about knowing what the buyer and the key decision maker wants. Price is only a component, but must be taken seriously. Wal-Mart has the lowest price, but you don't buy all your goods at Wal-Mart even though they're sold there. There are other factors contributing to your decision. Same applies with your customers. The only differences between B2C and B2B sales are many decision makers and a pecking order. Get to the key influencers to learn what's important and what's not, and what price will win the order. Then you can decide whether or not you want to offer it.

Since 1995 Sam Manfer has been speaking, consulting, writing and leading seminars in sales and personal development. As a keynote speaker and seminar leader Sam has addressed thousands of new and experienced sales people and managers all over the world in all types of businesses and industries. Learn more at www.sammanfer.com