Three Ways to Overcome Price Objections

A prospect is 99 percent ready to buy your product or service. Now comes the hard part: convincing them to sign the contract at the price you deem as reasonable.

This is when the soon-to-be client asks for a lower price, discount, or another type of reduction.

Small and solo business owners know all about these tactics. We do it ourselves when negotiating. It’s a common pause before signatures and handshakes.

The September issue of Sales & Marketing Management addresses “how to beat the most common objection - pricing” in a column entitled, “Cutting Your Losses.” Daniel Adams of Chicago-based Adams & Associates shares three tips to remember during the negotiation process.

The captions are featured in S&MM along with my explanation for each.

1. Don’t Drop the Price
This is the worse thing you can do, especially during a pause in the conversation. Ask questions to uncover why the client believes the price is too high. The response should help you re-state or re-phrase the benefits that accompany the product or service, which may satisfy the client’s objections.

2. Establish a Timeline
Show the client how the investment will benefit his firm throughout a certain time period (6 months, one year, etc.).

Another option is to offer what you’re selling on a six-month basis. In this case, cut the product’s price by one third or two fifths, not one half. When the results are satisfactory, the client will be ready to invest for a longer period of time.

3. Add More Value
If the client continues to press for a price reduction, offer more service such as a better warranty or faster technical support.

Everyone wants a lower price, but other options are just as meaningful. Keep your sales on target with help from a list of services you can realistically provide, created by you and ready to offer as benefits during the negotiation process.

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August 31, 2006 | Filed Under Offline Ideas, Problems & Solutions, Recent Entries, Saving Money | Leave a Comment

Surveys Give Partial Solutions

“We listened to consumers who said they wanted to eat fresh fruit,” said a spokesman for Wendy’s. “But apparently they lied.”

Surveys help but your gut helps more This quote, featured in the September 8th edition of The Week, is a problem that many businesses face when trying to determine new products and services to launch.

Survey results that seemed so positive can suddenly become invalid. Inventory or service options languish because clients don’t want what they once craved, so they said.

This is why companies, including small and solo business owners, use methodical strategies before introducing something new. We can move on a trend much faster than the big boys, but we must still focus on the big picture before investing our cash, asking ourselves questions such as:

Think before making a final decision 1. Did I obtain feedback from loyal customers who consider what I sell to be an important part of their business or personal lives?

2. Does what I want to offer satisfy a need that, in this fast-paced society, lasts more than a minute?

3. Will technology change faster than I can sell the product, rendering it useless before I reach my breakeven point?

Surveys provide a great deal of valid information, but your gut instinct will help you decide whether or not a new product or service will truly be a winner.

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August 28, 2006 | Filed Under Customer Connections, Recent Entries, Surveys and Statistics | Leave a Comment

Online Music Lessons Play Up Profits

Strike a note for online selling Teaching classes and conducting seminars and workshops are becoming second nature on the Web. Just ask Mark Miller, a music teacher who conducts piano lessons to a student who’s physically located 4,000 miles from his studio.

According to the August 22nd edition of AM New York , the Web-based lesson works through the use of “inexpensive Internet-based calling and online video.” Technological leaps allow Miller to maximize his time by teaching from his location rather than spending travel time on the road.

The story appeared in AM New York but was written by a Los Angeles Times‘ reporter. It’s the only story featured in AM New York that I tore from my copy because of its significance to small and solo business owners.

The prospect of losing money and wasting time forces us to look for alternative ways to do better business. It helps us to uncover new technology and dynamic opportunities that await our discovery.

For example, a series of autoresponder messages can be created to launch once a day to teach a class that was formerly taught in a classroom. You might use a combination of Skype and Jotspot to speak with a client and show an online slide presentation rather than fly 3,000 miles for a meeting.

The possibilities are there. Necessity, ingenuity, and occasional desperation heighten the need to find what works.

If music, cooking, and other information is distributed with technological help, can the product or service you market be far away?

Note: Mark your calendar. A new, week-long marketing series for small and solo business owners launches September 4th.

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August 25, 2006 | Filed Under Online Ideas, Problems & Solutions, Recent Entries | Leave a Comment

Using Solutions to Get More Sales

Something to think about This weekend, a very good friend sent me a link to an article that addresses a dual purpose: 1) documenting how your product or service is used by clients, and 2) creating an article based on the documentation to sell more product.

The article is featured in the August 3rd edition of OC Metro, a business lifestyle magazine based in Orange County, California. It’s a quick read but very insightful on how to turn a solution into a sales tool.

Notice in the article that the documentation is called an “application story.” This term is similar to what’s known as a white paper. The company featured in the story changed the term to suit their business. This is wonderful. Why call what you use a white paper when it can be labeled another name to fit your marketing?

Small and solo business owners should use this idea to document how client problems are solved. Tell prospective customers, in plain language, the steps taken to save money, stop waste, or streamline tasks. The story provides a visual, and prospects can better see what you can accomplish for them.

Once you create your first white paper or application story, subsequent writings will be easier. Use the five points in the article to get started.

Technorati Tags: OC Metro, Orange County, California, application story, white paper, solo business owner, small business marketing, small business owner

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August 21, 2006 | Filed Under Customer Connections, Problems & Solutions, Recent Entries | Leave a Comment