4 Ways to Win the Deal When You Don’t Have the Lowest Price

4 Ways to Win the Deal When You Don’t Have the Lowest Price:

Some companies and salespeople feel like they can’t compete with their competitors because of their pricing. But just because you know you’re not the lowest price around doesn’t mean you shouldn’t try to win the deal and it also doesn’t mean that pricing is all that your prospects can be swayed to buy with. Read on for some tips to help you position your company as the better choice — even if you’re not the lowest priced choice.

1. Demonstrate Value

Things can have major selling points based more on perception of the brand rather than based on pricing alone. Demonstrating your value will help people see that your offering is a better choice. There are various ways to demonstrate this, including:

• Warranty and Guarantees. People may be willing to pay a bit more for your product because the warranty is superior to that of your competitors. And if you’re offering something with a guarantee, this also helps to minimize risk in their eyes.
• Quality and Superiority. If your product or service becomes well known for being better than that of your competitors, you’ll get more clients this way. A good way to demonstrate this is via customer testimonials.
• Appealing to the customer’s wants and needs. If you’re selling in person, you can find out what’s most important to the client and sell based on that need. If you’re selling online, you can do this in your copywriting. Appeal to their wants and needs. By working hard at appealing to their wants and needs and illustrating that you can meet them, pricing becomes secondary to most people.
• Show return on investment. If your product or service will substantially benefit the prospective customer in some way, illustrate this. Show them the math and the pricing can become much less of a factor than before because it plants the seed that that the purchase won’t be a cost as much as it will be an investment in future ROI.

2. Customer Service

There are times when customer experience is much more important than pricing, especially if a prospective customer has had a bad buying experience with your niche in the past. If you do customer service really well, you’ll have not only a better chance of getting customers through word of mouth referrals and building a positive reputation but you’ll have a better chance of having people come back as well. Make sure you work to show them why you’re the ideal choice. (Tip: don’t just blurt facts and tell them, take the time to actually show them)

3. Set the Right Price

Some business models have more room for more profit margin. Some do not. If you’re trying to achieve huge margins when the nature of your business is a volume business and most of your competitors are charging people way less for the exact same thing, you probably won’t be able to pull off that higher pricing. Make sure you know your niche and know your competition and this will help you ensure you’re setting pricing in a competitive but profitable way. If you’re in a position to charge more, by all means, make more money, but be reasonable about it and you’ll probably do well.

4. Know Your Customer

There are times when you might want to lower your margin to win a deal. There are times when you won’t have to or where it won’t make sense to. It’s important to get to know the customers and the prospects you have so that you can set the right pricing structure to help you win and retain that customer’s business. If you’re not using a CRM tool to help you keep track of vital information, it’s wise to implement one.