Still Selling on Price? Think Again.

We all understand that the market is crowded - with products / solutions, with sales people, with companies, with information and with competitions. And we often hear sales people offering price discounts in order to win deals. BUT is that really necessary and sustainable?

Why are there retail brands or commercial businesses that uphold their prices without discounts, and people still buy from them?

When Singapore introduced a new car purchase policy that requires the buyer to pay 50% cash upfront (and we all know the hefty prices of cars there), why are people still buying?

When Apple announces a new iPhone model launch date, why are there still long queues in front of their stores, even though no price discounts are offered?

Ever heard major brands like Hugo Boss, Rolex, Ferrari mentioned about promotions or bundles in their market messages?

For sure, many still see a certain value in them.

So why are we still offering discounts the moment we hear that word coming from the mouth of the buyer? Because IT IS THE EASIEST TO DO! Building value is hard work.

In today's article, let us see consider a few reasons why we should stop offering price discounts as the focus of attention when it comes to negotiation for sales closure :

NEGATIVE BEHAVIOR

When you sell on price, you teach your client or prospect that all that matters is price. The next time they have a requirement, they will still be expecting the same level, if not more discounts, from you.

NEGATIVE LOYALTY

Let’s say you convince your prospect that they should switch from their existing vendor / brand to you because you can offer them a lower price. Congratulations. However, did it ever occur to you that they’ll leave you for another vendor for the same reason? You are teaching your market that your differentiation is price.

NEGATIVE BRAND IMAGE Since people remember you for price, when it comes to referral for someone who is really good, reliable and value worthy, you will probably be sitting at the back seat, not the back of the customer's mind.

NEGATIVE CAREER MOVE

Imagine this scenario. You went for an interview for a sales position. You were asked, "when was the last time you won a major deal and what did you do?". And your answer?

"I gave a huge discount!"

A recent research from Forrester has reported that in the next few years, almost 1 million sales people will lose their jobs due to the digital transformation. But the business need for business consultants will see a demand of 10% increment.

Sales professionals would now need to make a choice - keep doing what you do, or evolve to keep doing better?

"So why are we still offering discounts the moment we hear that word coming from the mouth of the buyer? Because IT IS THE EASIEST TO DO! Building value is hard work."

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Using price to win a sales is a technique, but it should never be used solely and primarily, especially when you are helping customers with solutions. Building value is agreeably harder work but it drives a longer term relationship with your customers. We should never spill the money on the table.

If you have see more negative reasons in doing business using price, do share your opinions. We would love to hear from you.

Cherry-O!

#Awareness