How to Avoid Being Beat in the Price Game

How to avoid losing on price

 

“I’m being commoditized out there!  Buyers are telling me we’re all the same.  I’m told the lowest priced “vendor” gets the business.”

 

Sugar, corn and coffee are examples of commodities.  If you’re in the business of selling these, then you’re in the commodity business.  If you don’t sell commodity products you’re not in the commodity business and therefore cannot be “commoditized”.  It’s an important distinction and mindset!

 

Understanding this reality and truly embracing this concept will go a long way in helping you avoid being beat on price while simultaneously enjoying selling.  (Yes it’s possible to enjoy selling!)

 

Let’s be honest with ourselves.  If you find yourself in the position where your prospect or customer is telling you their decision will be based on price, they are not seeing any difference between you and your competitor.

 

If you find yourself in the position of being “commoditized” it’s because of one reason.  You have not successfully shown, illustrated or proven that you are unique in some meaningful way.  You will be much more successful, and happy, when you continue to build upon your ability to explain and prove your value.

 

The reality is that very few buyers buy exclusively on price.  At times you may feel price is all that matters, but there’s more.  Virtually always there are other “primary” and “secondary” reasons buyers buy anything.  Here are two facts to prove that’s true:

 

1.     If price were the only reason buyers bought anything, there would be only one company to sell it!  (We know that companies and people do make a difference!)

2.     If price were the only reason buyers bought anything, we wouldn’t need sales people!  (We know sales people are needed and good ones do make a difference!)

 

It helps to keep in mind that prospects will always tell you they buy on price because they’re counting on you “caving” and lowering your price.  That’s part of negotiation!

 

Here are 3 tips to help you sell value and successfully justify your price:

 

1.     Become a “detective”!  Use every prospect and customer/client conversation as an opportunity to uncover the “primary” and “secondary” reasons they buy what you sell.  Simply ask them!  Keep track of the answers.  Over a very short period of time you will gain a crystal clear understanding of what’s important to people who buy what you sell.  This insight helps you focus on what matters and as a result will help you articulate value and gain an edge!

2.     Become very serious and disciplined about getting positive quotes and letters of testimony from your happy customers/clients.  Using 3rd party evidence is a powerful way to “prove” your claims!  Today buyers want evidence.  They want proof.  Proof helps you justify value!

3.     Know that buyers need you.  Yes they can get a plethora of information on the Internet but they need you to “connect the dots”.  Often when buyers turn to the Internet to do research they find so much information they end up in a state of confusion!  It’s like drinking out of a fire hose!  They get so much information they can’t process it!  That’s where you come in.  You will help them gain insight and understanding into what really matters.  This is value!

 

Remember, the words we choose to describe ourselves will create our beliefs.  Our beliefs will dictate our behavior.  Our behavior will determine our results.  Take whatever steps are necessary to avoid viewing yourself, and your offering, as a “commodity”!  After giving it some thought you will come up with several areas in which you, and your product, are unique!  Put in the time and the