What is your budget?
Last week, my husband and I decided that our Christmas gift this year would be a one-week vacation in the sun. So, one evening we stopped at our local travel agency for advice and possibly book our vacation. We were quickly greeted by an agent and as soon as we sat down she started asking questions (answers in italic): Dates please? Mid-January, How many people? 2, What is your budget? Not determined. Are you aware that it’s very expensive to travel during that time of year? So, you think we can’t afford it?
Not only did she not create value for the destination, all she kept talking about was pricing and finding the cheapest rate. I understand the concept of lowest price for some recurrent purchases - why pay more when you can pay less? For a vacation, a new car, a professional work outfit or anything else that has value for the buyer, does it really apply? Does it make sense to base this kind of purchase on pricing only?
A recent study shows that more than 60% of customers are willing to pay more to have their expectations of quality met. That means that a good sales person needs to be able to shift the conversation from asking «What is your budget» to « What is your #1 decision factor for this purchase».
Being good in sales doesn’t only take knowledge about the products and services, one needs to understand why customers buy, then ask the right questions to determine which benefits will create value and ultimately gain commitment. Thankfully, these skills can be learned through training!
By using a non-manipulative, client-centered approach, you can learn to convert more incoming sales inquiries and make better sales calls and prospecting emails every week, thus driving incremental revenues. Whether a rookie or veteran salesperson, the Signature Canada Client-Centered Sales training session will help individuals take a more proactive, disciplined approach to selling in order to see significant and sustainable increases in revenue. Through a variety of techniques, including role-playing, Signature teaches participants:
• How to approach clients by both taking and making sales calls;
• Techniques used to receive information from clients;
• How to assess if the client is the “right match” for your company;
• How to present benefits by fulfilling both emotional and logical needs;
• How to shift conversations to avoid presenting rates too soon in the sales process;
• How to verify information to ensure understanding and advance the sale;
• How to respond to clients’ objections;
• How to gain commitment from clients to advance the sale.
Then again, it may seem as though price is one of the largest factors when making sales, but, interestingly, studies show that the typical salesperson is a lot more concerned about price than the typical customer is. When you ask your client if he has a budget, it focuses your customer’s attention on it, even if they weren’t overly concerned with cost at the beginning of the interaction. Smart salespeople handle price as if it were a minor consideration. Of course, when the prospect makes it an issue, they deal with it effectively. But even then, they try to minimize its importance.
To deal with price-cutting attempts, one needs to get comfortable responding to the phrase “your price is too high.” Here are some of the responses Signature suggests using:
• “Let me tell you why our price is where it is.” At this point, repeat each of the benefits your product provides and the emotional costs your prospect will save by partnering with you.
• “Let me explain how each of the things we’ve discussed will help you.” Expand on the benefits they’ll receive and the emotional relief you’ll provide them.
• “We can work to give you a better price. But to do that, we’ll have to remove some of the components we’ve discussed. Which would you like to eliminate?” Your prospect will likely not want to remove or reduce any of the benefits you’ve provided. When you use this as your last option, you’d be surprised at how often a prospect will find a way to make the price work.
By focusing less on price and more on the value you are able to provide your prospect, you can keep your buyer’s attention on what they’re ultimately concerned with — finding the right solution. After that, it’s just details!
Not only did she not create value for the destination, all she kept talking about was pricing and finding the cheapest rate. I understand the concept of lowest price for some recurrent purchases - why pay more when you can pay less? For a vacation, a new car, a professional work outfit or anything else that has value for the buyer, does it really apply? Does it make sense to base this kind of purchase on pricing only?
A recent study shows that more than 60% of customers are willing to pay more to have their expectations of quality met. That means that a good sales person needs to be able to shift the conversation from asking «What is your budget» to « What is your #1 decision factor for this purchase».
Being good in sales doesn’t only take knowledge about the products and services, one needs to understand why customers buy, then ask the right questions to determine which benefits will create value and ultimately gain commitment. Thankfully, these skills can be learned through training!
By using a non-manipulative, client-centered approach, you can learn to convert more incoming sales inquiries and make better sales calls and prospecting emails every week, thus driving incremental revenues. Whether a rookie or veteran salesperson, the Signature Canada Client-Centered Sales training session will help individuals take a more proactive, disciplined approach to selling in order to see significant and sustainable increases in revenue. Through a variety of techniques, including role-playing, Signature teaches participants:
• How to approach clients by both taking and making sales calls;
• Techniques used to receive information from clients;
• How to assess if the client is the “right match” for your company;
• How to present benefits by fulfilling both emotional and logical needs;
• How to shift conversations to avoid presenting rates too soon in the sales process;
• How to verify information to ensure understanding and advance the sale;
• How to respond to clients’ objections;
• How to gain commitment from clients to advance the sale.
Then again, it may seem as though price is one of the largest factors when making sales, but, interestingly, studies show that the typical salesperson is a lot more concerned about price than the typical customer is. When you ask your client if he has a budget, it focuses your customer’s attention on it, even if they weren’t overly concerned with cost at the beginning of the interaction. Smart salespeople handle price as if it were a minor consideration. Of course, when the prospect makes it an issue, they deal with it effectively. But even then, they try to minimize its importance.
To deal with price-cutting attempts, one needs to get comfortable responding to the phrase “your price is too high.” Here are some of the responses Signature suggests using:
• “Let me tell you why our price is where it is.” At this point, repeat each of the benefits your product provides and the emotional costs your prospect will save by partnering with you.
• “Let me explain how each of the things we’ve discussed will help you.” Expand on the benefits they’ll receive and the emotional relief you’ll provide them.
• “We can work to give you a better price. But to do that, we’ll have to remove some of the components we’ve discussed. Which would you like to eliminate?” Your prospect will likely not want to remove or reduce any of the benefits you’ve provided. When you use this as your last option, you’d be surprised at how often a prospect will find a way to make the price work.
By focusing less on price and more on the value you are able to provide your prospect, you can keep your buyer’s attention on what they’re ultimately concerned with — finding the right solution. After that, it’s just details!
Julie Charbonneau
Signature Canada is a leader in training employees to deliver legendary customer service while increasing sales. Since 1986, Signature’s unique training methodology has provided a measurable ROI for our customers, compelling them to return year after year.