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You Are Selling Price or Value?

By Admin on 2016-12-09 11:14:50 posted in Trade Learning

In a customer visit, Salesman A came to visit customer B who he had followed up with for a long time with his products. During the email communication, salesman A recommended his products to the customer for many times but B always rejected with the reason of price high and said he already had fixed suppliers for the same products. Seeing the target customer ahead, A didn't want to give up, there came this visit. 
After reaching the showroom, A knew where the problem lied: product quality level. The customer showed A their products in the market. Though it was the similar product, it can be easily found that customer’s product was far more lower than that of A's product no matter in the aspect of material or details making. As long as both products were in comparision, different level can be easily found.
A knew that no matter how he re-calculated, they still can't reach customer's target price because there was material, there was cost. Therefore, after quoting the best price, A began to negotiated with customer from product value and brand development.
A said: " I believe that you can easily find that the raw material and making of our product is different from yours and this is why the price gap is so large between our products. But if compared with the same product with the same quality and level, our price must be the most competitive." Customer B said: "I know. I admire your product and I know your product quality is higher than ours, however, there is no complains of our product. With the similar product that can meet the market demand but large price gap, which one will you choose?"
"Receiving no complains doesn't mean the product suits your company. Customers choose your product because of your brand and they know your brand more after using your product and they know what quality and level they choose when they choose your product. As far as I know, you are the middle high class old brand in the local market which focus on quality. Therefore, I think you should position your product in a higher level for a better development of your brand, to let your customers know your brand represents high quality and you are the first choice for good product..." said sales A. Customer B didn't say any about the price but was lost in thought and said: "let me think..." at this time, A knew their cooperation got closer.
What do you learn from the above case? Price is the most common reason of customer's rejecting order. Quoting a little higher to leave bargaining space and giving the original price when customers bargain is our common "trick". But when customers don't satisfy this bottom price, this trick doesn't work. What we need to do is to know customer's purchasing level and change customer's idea on our product's price, from "very high" to "excellent quality and reasonable price" and bring good added value, but not just try to convince customer by only price or quality. Because before seeing the actual product, quality is merely a weak reason. Also from the case we can also find the importance of customer visit for pushing cooperation.

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Bhumi 2022-10-13 15:12:01

Your this blog about selling price and value came out very knowledgeable for me. Thanks for sharing this blog.