Price Is Never The Issue
Price Is Never The Issue
Do you know what is?
As a coach, I’m constantly listening to sales people tell me that they’re having trouble selling because their price is too high. This usually happens when they work for someone else who sets the price. The reality is, price is never the issue when it comes to making a sale. I know some salespeople don’t like hearing this, so let me explain.
Most people will buy what they want before they buy what they need. In the television movie about The Temptations, the actor playing Berry Gordy — the founder of Motown records — wants to know if his focus group thinks The Temptations song they just heard would be a hit. A few of the hands go up. To further clarify their commitment, he asks the focus group, “If you only had a dollar, would you buy this record or would you buy a sandwich?” This was a great question because it determines how badly they want the record. Notice that price is not the issue; it's what will give them a greater return on investment and how soon will they get it.
In the example above, it’s easy to understand the return on investment of a sandwich. You can buy it now and eat it now. You can determine whether or not it’s worth the dollar and how quickly it will provide satisfaction. Not everything we sell has as quick of a return on investment as this example.
The other factor that determines whether or not somebody is going to buy is how big the return on investment will be. To a starving man, the sandwich will do the trick. That’s a big return on investment.
With this example in mind, I challenge you to look at what you sell and determine how big the return on investment is to your prospects and how quickly they get it after they buy from you. This is the essence of why customers buy anything.
Lottery tickets offer a big and quick return on investment. However, the return is not guaranteed. Yet, millions of people buy lottery tickets just for the possibility of getting a big and quick return on investment.
If you want your customers to buy from you, it’s your responsibility to explain how big the return on investment will be for them and how quickly they will enjoy it. The better you get at communicating this to your prospects, the more of them will become your customers.
"Price is what you pay. Value is what you get." - Warren Buffett
(This excerpt is taken from the 5-part series The Sales Academy.) I encourage you to click here to register for the Spring 2022 Sales Academy running on five consecutive Friday mornings beginning on Friday, April 22, 2022 through May 20, 2022 from 9 AM to 12 noon Eastern Standard Time at the Comfort Suites in Manheim, PA. This program will also available through live streaming.
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