7 Steps to Selling your Price and immediately improving your Profits

“How much?” is every customer’s question. A good answer from a knowledgeable salesperson will result in a sale. A bad answer typically means the customer will re-pocket his wallet and walk to the competition.

What is a bad answer? Blurting out the dollars and cents, of course, with no attempt to offer value and no attempt to frame this as a good deal. Good and well trained sales people find a way to create a vivid picture of value in their client’s brain before talking about price. How do you do that?

Step One: Train the staff to deal with sticker shock. Remember that a shocked response to your price is sometimes merely a buyer’s strategy to get a discount.

Step Two: Frame your price. Sometimes sticker shock reflects ignorance of the market conditions. If your competitor is within a few pennies of your pricing, your customer will appreciate knowing that you are competitive.

Tell him!

Step Three: Get value on the table before you talk about price. Build a detailed picture of the value that is offered by your product or service. Once the value side of the ledger is built up in the mind of the customer then the price on the other side of the ledger seems less important. Keeping the price to the end means keeping profit margins.

Step Four: Paint a vivid picture. Many years ago, a 300 pound Maytag sales trainer quietly positioned a tiny stepladder to the side of the heavy duty washing machine he was illustrating. He explained how special was the steel in the springs and bored us with the technical details until all our eyes were rolling back into our heads. This huge man casually stepped up and into the machine through its open lid. “This is heavy duty”, he loudly announced, while standing inside the washing machine with outspread arms and a gigantic smile on his face. That image has never left my memory.

Step Five: Get your customer to open first; telling you what price they thought they might pay. Most retailers and contractors will have a range of prices for similar goods that coincide with features and extras. No point in wasting time trying to sell a $30,000 boat to a man with a dinghy budget! Get him to the dingy aisle as soon as possible.

Step Six: Sandwich your price between the benefits you have already listed. This heavy duty washing machine with super thick springs will save you water and time by handling those really big loads. And at $799, it is a real bargain because of the 2 year warranty on parts and labour.

We don’t train sales staff to sell the price but it is just as important as selling the technical information and will lead ALL THE TIME to better profits.

Andrew Gregson

Andrew Gregson

Senior Partner at Intent Financials Inc.
Andrew D. Gregson is a licensed financial professional who holds 2 Masters degrees. Mr. Gregson is a former owner of multiple businesses, writer on business matters, published author “Pricing Strategies for Small Business”, former owner of 2 franchises and 5 start-ups and has worked as a Chicago based business consultant.
Andrew Gregson

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