Negotiation and Selling Against Lower-Priced Competition

Transcription

1 Negotiation and Selling Against Lower-Priced Competition Presented by Steve McCreedy and Michelle Richardson of The Brooks Group

2 Moderated by: Michelle Richardson Presented by: Steve McCreedy

3 Introduction to The Brooks Group Founded in 1977 Based in Greensboro, NC, with a global presence Core Competencies: Sales/sales management training and reinforcement Assessments for hiring, development

4 A Sample of Our Clients

5 Most salespeople think price is more important than it is.

6 What do you sell? I sell the best laser cutting system in the industry. I sell myself. I sell top of the line quality control software. My products sell themselves.

7 Here s a hint It isn t thread cutting machines, marking & engraving machines, coolant reclamation equipment or adaptive control systems!

8 A rose is but a rose by any other name But, you don t understand! We sell a commodity. We have the same multi-spindle cutting machine that our competitor can sell.

9 What is a commodity? Any item for which there is extreme competition; one that has no discernable difference that separates it from others

10 What s your competitive advantage? Delivery Selling Skills Service Quality Price

11 Two Components to Price 1. How much the price actually is 2. How your prospect perceives your price

12 What shapes that perception? The Value Formula V= PB PP or PEC

13 The way you handle price determines the probability of getting your price.

14 1. Timing is everything. NEVER quote price to an unsold buyer.

15 The Premature Price Question Let s cut to the chase. How much is it? I understand that price is important, and it should be. We have a full range of prices depending on several factors. I d like to make sure I understand what product, with what features, is right for you. Then, I ll give you the price to the penny. Is that fair? -OR-

16 Your Alternative Response Just tell me the price. Our prices generally range from to. No doubt you ll be somewhere in between. However, I ll be able to show you an exact price once I know what you d like to accomplish. Will that work?

17 2. Believe in your price, and... Believe you re going to get your price.

18 3. Identify what your prospect needs..and wants from your solution.

19 4. Create Value to Exceed Price Focus on BENEFITS, not features or price.

20 The Stacking Formula Benefit = Access to expertise Benefit = Relief of pain Benefit = Pride of ownership Benefit = Peace of mind Price = $ XXXX Benefit = Timely repair Benefit = Warranty Benefit = Ease of use Benefit = Time savings Time Risk Money Change Cost Value

21 Presenting the Price Before I give you the price, let s review everything it includes

22 Don t invite resistance!

23 The Ultimate Test? You should be able to state the price with the same ease that you state the time of day.

24 Word Choices That Intimidate All you guys sell the same thing. (Comparisons) My other supplier can give me a better price. (Possessives) Cut your price or you re out of here. (Threats)

25 Surprise! Intimidation tactics mean you re still in the game.

26 Strategies for Addressing Price Objections

27 1. The Oh Response You re 20% higher than everyone else. Oh? Your Prospect Says: You Respond:

28 2. Question the Prospect I am not paying that kind of money. Why not? Your Prospect Says: You Respond:

29 3. Justify the Price I can get the same thing from for half that. The price is where it is because... Your Prospect Says: You Respond:

30 4. Use Testimonials I don t know who would be crazy enough to pay that price. Your Prospect Says: One of our biggest clients is, and they have lots of good reasons for buying from us... You Respond:

31 5. Subtraction That price is way too high. I can t pay that! Your Prospect Says: We can work to give you a better price, but we ll have to remove some of the components we discussed. What would you like to eliminate? You Respond:

32 6. Use Stoppers Your price is too high. Your Prospect Says: Believe it or not, that s why you should do business with us. How else can we do all that R&D, develop new technology, etc.? I just can t do any better than that. Do you realize what you d be losing? You Respond:

33 The final word on price concessions: Never give without getting.

34 Your Action Plan Your handout contains these planning tools: Practice presenting price Responding to intimidation tactics

35 Questions?

36 Free Offer for AMT Members The Premium Price Seller s Ready Reference Guide Includes 33 strategies customers use to negotiate better prices, and how to win those negotiations! To download:

37 Thank You! Steve McCreedy Michelle Richardson The Brooks Group