How you handle the situation can have a significant impact, not only on your own sales results, but potentially in the market place you are participating in.
What do you do when a prospect tells you that your prices are not competitive? My first recommendation is to accept the information as true and secondly, avoid the temptation to immediately meet the competitive sitiation.
Is your propect comparing apples to apples? Here are a few points to consider:
- Volume of sales
- Delivery times
- Terms and conditions of sale
- Quality and performance
- Customer service
- Who is the competition?
- What is the price gap and is it beleivable?
How else might you validate the claim of lower price in the market place?
- Ask your existing customers if they have heard anything from your competition
- Ask your other prospects if your prices are competitive
- Ask the prospect to provide supporting documentation of the competitive situation
What you do not want to do is be the low price provider if that is not your strategy, especially if you do not have the lowest costs.
What you do want to do is validate the competitive situation before making any commitments. Everyone wants a better price, can you afford to leave money on the table? That can easily happen if you meet a competitive situation without having all the facts.
If you are new to the industry or not yet a major player, an established competitor will outlast you in a price war, so avoid starting one.
There are situations where you may not be able to compete, accept it and move on.
Good selling,
Richard
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