Price is an Issue - It's Not the Issue

You've hired a dedicated sales force. Your companydiagnosed in 20 minutes? A sales meeting set with
has the best product. Great service is delivered afterpoor expectations leads to poor investment by the
the sale. So why is your team losing sales to "lowprospect.
price?" Here are four reasons we see when workingLousy selling skills clobber salespeople who work in
with individuals and sales teams:industries where goods sold are perceived as
1. Wrong Audiencecommodity. The untrained salesperson doesn't know
If you're trying to sell ice to an Eskimo, you're inhow to move the sales call from a "give me a quote"
front of the wrong prospect! Let's face it, you couldcall to a consultative sales call. Many sales
be Zig Ziglar and still not close the sale if you are notprofessionals "obey" the prospect and give a quote
selling to a real prospect. Knowledge, businesswithout qualifying the prospect. The professional
acumen and excellent selling skills are useless if theysalesperson knows how to respond when the
are not in front of a prospect that values theprospect starts pressuring for price by saying, "We
expertise. Neil Rackham, author of "Rethinking theare competitive in our pricing, however, it's not the
Sales Force," does an excellent job describing thereason our customers do business with us." This
two types of buyers that exist in the market place;response tells the prospect that you are not there to
the transactional buyer and the value buyer.talk price, you are there to learn about their
The transactional buyer feels the product or servicebusiness's issues and challenges. After all, if price is
is easily substitutable, doesn't value the expertise ofthe only issue, the perspective customer doesn't
the salesperson, and sees price as the main decisionneed a high paid sales professional. They only need a
criteria. Trust in the product is more important thanwell-designed website with an e-commerce function.
trust in the salesperson.3. No Competitive Analysis on the Competition
The value buyer recognizes differentiation,Run a pop quiz on your sales team this week and
appreciates the expertise of the sales person, andsee if they know your company's strengths and
places trust in the person over the product. The keyweaknesses as compared to your biggest
decision criterion is a salesperson that understandscompetitor. A salesperson must know the gaps in the
their business and knows how to fix theircompetitors offering such as no training on products,
problems...and they are willing to pay for thatlack of 24/7 support, or difficult implementation. Once
expertise and service.the gap is identified, the professional salesperson
If a salesperson is trying to sell value to thecrafts questions to expose the gap and impact to
transactional buyer, they're going to fail because theirthe prospect. Put it this way, if you can't find any
company's business model of offering value doesn'tdifferences, how the heck can your prospect? And if
match their prospect's business model of buying onthere is no difference, the prospect has earned the
price. They don't want to buy ice.right to buy on price.
2. Poor Consultative Sales Skills4. Conviction
Ok, so you're in front of the right prospect and areThis theoretical word is at the core of selling value.
still getting beat up on price. More than likely it'sConviction starts with the salesperson. Merit Gest, a
because you didn't set up a consultative sales call, butfellow sales trainer, teaches her clients, "You have to
instead a question/answer session. The problembe sold on yourself before you can sell anything else!"
starts when the appointment is set. SomeAn old joke floating around the sales training world
salespeople seem almost apologetic when setting upstates, "If you are looking for a brain surgeon, do
appointments. "I know how busy you are" can belook for the cheapest or the best?" Salespeople must
interpreted as "I have nothing going on," or "I'd like tohave the same attitude. Do you regard yourself as
come by - I'll only be 20 minutes" can come acrossthe "sales surgeon" in your industry?
as "My product or service doesn't deserve muchMake sure you are in front of the right prospects
time." If your prospect has a problem that is costingand ask yourself...is price the issue or are you making
them $100,000, can it be thoroughly discussed andit the issue?