What is the best response when asked, “Is the price negotiable?”
Your first reaction might be to lower the price to close the deal.
- Interpreting their question as a request will result in lowering the price.
- Offering to lower the price, only to find they will continually ask for more.
A better response is to demonstrate the value of your offering.
- Work with your prospects to help them better understand the value of your services, products, and deliverables.
- Show them the great deal they are already getting when evaluated in terms of the specific value you’re bringing to their company and how doing business with you will help them meet their goals.
How to Show Specific Value
If you’re creating a tailored solution, show them the short-term and long-term effects that your program, services, or deliverables will bring. ROI is critical.
B2B salespeople must be able to show how they will deliver measurable returns. Whether it’s employee retention, increased efficiency, stronger sales performance, or increased customer acquisition, showing specific value to your customer is the best way to navigate the price negotiation phase.
Talking About Price: Key Strategies
In the Sales Accelerator, we teach that there are three effective ways to prompt the conversation about price:
1. Quantify the Desired Business Results
- Clearly articulate how your solution will achieve the desired business results the prospect is looking to achieve.
- Use metrics and data to support your claims, making the benefits tangible.
2. Use the Assignment to Discuss the Price
- Integrate price into the broader conversation about the project or assignment you are working on.
- Make price part of the overall solution rather than a standalone point of contention.
3. Offer an Investment Range
- Provide a range of investment options that align with the value and results you promise to deliver.
- Let the prospect choose a level of investment and the expected value that they would receive.
Conducting a Strong Needs Analysis
If you’re having trouble showing value, you need to spend more time in your Discover Meeting learning about the company, how it operates, and its specific goals and challenges.
You can then work to find solutions to help address their challenges and meet their goals. And can communicate specific value in doing business with you and your company.
Conclusion
Selling specific value is difficult, almost impossible, if you don’t know what is important to your prospect. Dig deep during your needs analysis so that you can create a solution that they will find valuable.
Expected price is based on expected value. Show the value.
*Editor's Note: This blog has been updated since its original post date.
