Your Sales Team is Afraid of Price

Your Sales Team is Afraid of Price (Here is What You Can Do About It!)

 

In a sales presentation one of the hardest subjects is price.

I rarely run into a salesperson or sales manager who does not want to discuss price.

Arguments are varied, but “Price” is the most common reason for lost sales.

The argument of price hindering sales doesn’t make sense.  What is it really? One thing “salespeople are afraid of price”. Yes, that’s it!

They’ve developed a huge defense mechanism to allow themselves to believe that the reason they’re not more successful is because of price.

Despite their attempts to paint price as the problem, price really is not the issue. The issue is salespeople don’t want to admit their own weakness in providing the customer a solution focused on the customer’s desired outcomes.

The salesperson has not established the price/value relationship in the mind of the customer, and instead of admitting this and trying to improve, the salesperson just resorts to “price” as an excuse.

When put that way, it’s simple to comprehend, isn’t it?

But I can take it even further: Salespeople are afraid because not only have they never believed in their price, they also don’t have any of confidence in their entire sales process.

If price is the reason a customer will or won’t buy, then there is no reason to have salespeople.

In place of salespeople, a company should have order takers or nothing more than an on-line ordering system. Why keep paying salespeople for something that doesn’t require their expertise?

Successful salespeople, on the other hand, recognize and embrace what it means to engage the customer directly to understand what the person needs and wants.

This requires the salesperson be patient and good at questioning and listening. They must purposely notget into a price discussion until the appropriate time.

Salespeople who are afraid of price let price enter the discussion way too early.  They do this because the customer asks what the price is, and the salesperson is compelled to answer the question immediately.

Nothing kills more sales than allowing price to become the center of the sales discussion too early in the process.

Just because a customer asks about the price doesn’t mean the salesperson has give it to them.  When the salesperson lacks confidence, they tend to jump to extremes as soon as the customer asks about price.

To condition salespeople to resist this urge, sales management must take an active role in minimizing the fear about price.  It’s no wonder that so many salespeople are afraid of price when they’ve never had adequate support and training.

Here are some ways to deal with the fear of price:

Management must promote and support the price.

If a sales manager doesn’t feel good about the price, then why should their salespeople feel good about it?  The attitude and approach of the sales management is vital to how a salesperson feels about the price.

If you are in sales management, look closely at the conversation when discussing the price of your company’s products and services tone and content are important at this point.

Salespeople must have a solid understanding as to whythe price is the price.

This means they need to know and be able to present the benefits and outcomes a customer receives when selecting the product/service.  Price should not be established based upon on the cost of the item.

This gets a lot of salespeople into trouble.  Basing on cost alone will always undermine the profit potential of a product.

Salespeople must be trained on how to handle the price question when it comes up on a sales call.

Price should not be part of any sales discussion until the customer has shared the needs they have and the benefits they are looking for.

Also, salespeople must be able to recognize if the customer is ready to make a buying decision.  Discussing price before determining the customers’ needs and wants most often results in failure.

Salespeople must be confident in their sales presentation and skills, including communicating the price and benefits.

These steps will greatly diminish fear among your sales team when it comes to price.