What’s the Once Thing 35 out of 40 Businesses Forget to Do That Kills The Sale?
“I’m having trouble selling my hearing aids even though I discount them 30%. Should I sell it for even less?” — George R., MI
Why Prospects Don’t Buy
Ever wonder why your prospects aren’t buying?
You know the situation. You’ve got a qualified prospect on the phone or you’re meeting with them in person and they’ve agreed that your product or services are the perfect fit. Then you mention the price, and they don’t bite. They tell you that they want to think about it or they need to talk to X or they just flat out tell you its too expensive.
You could offer them a discount but is that the right thing to do or are you just shooting yourself in the foot.
When a prospect who needs your product or service walks away and doesn’t buy, typically it’s not price that’s the problem. And if your prospect isn’t buying, lowering the price won’t guarantee the sale.
Why Price Isn’t The Problem
Typically when your prospect doesn’t buy or objects to price, the real problem is that they don’t understand the value of your products or services. And it’s not their fault; it’s the fault of your small business marketing. Whether you sell consulting services, hand tools, hearing aids or chicken legs, the price you can charge is based on your prospect’s perception of its value to them.
Don’t Make This Mistake
Want to avoid losing clients? Here’s an example of what not to do.
Last year I was planning a family reunion at a charming old inn in the Berkshires in Massachusetts. As part of the festivities, I wanted to organize a light breakfast buffet for the 50 or so relatives attending. The inn quoted me a price of $29 per person, without giving me any information about what was included. When I got the quote I was shocked. It was much more than I’d anticipated, and I decided to drop the whole idea.
What was the fatal mistake the Inn made?
Without a clear understanding of what I was going to get for $29 per head, I had no means of determining whether it was worth the money. I didn’t know whether the $29 per person charge included just a cup of coffee and a donut or a full buffet breakfast with a chef on hand to cook custom omelets.
Either way, the inn lost an opportunity to feed us another meal and profit from the presence of our large group.
When your prospects object to price or just leave without buying, it’s a signal that your marketing isn’t doing its job. You’re not giving your prospects the information they need to understand what your products or services can do for them. As a result, they don’t buy from you.
How to Increase Sales
Want to avoid objections to price, sell to more people and even raise your prices?
Since the price a prospect is willing to pay for your products and services is directly related to their understanding of its value to them, then the higher the perceived value, the more you can charge.
One of my clients, Janice, was working way too hard at bringing new clients to her phone coaching business. She helps clients eliminate anxiety and replace it with self-confidence so they can be more productive in their work and lives. She had dozens of prospects, but when she quoted her fees, too many prospects opted not to sign up.
When I asked her to describe the things she does for her clients and the benefits of her services, she gave me a lot of information and many examples of her successes. Then I asked her how much of this information her prospects knew. Very little, she said. Whoops!
I find that most small business marketing managers and owners I’ve talked to make the same mistake. They have a great product or service but neglect help their prospects fully understand the value.
Define Value In Terms Of What Your Prospects Want
The solution was simple. I showed Janice how to structure her sales conversations and how to ask the right questions to get her prospects talking about their goals and needs. This sets the stage so that when she explains the services she provides, it’s clear that they are the perfect solution to her prospects’ problems.
The result? Instead of lowering her prices to get more business, Janice increased her fees. Within a week she was making 50% more money.
Wouldn’t you like to have prospects eager to pay the prices you charge? Sound impossible? It isn’t.
When your prospects fully understand of how much better off they’ll be or how much more successful they’ll be with your products and services, more people will want to work with you and buy from you and they’ll happily pay more to do so.
Proven Small Business Marketing