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Make Your Product as Financially Appealing as Possible
05/26/2008 - By Laura Laaman It's easy enough in any economy for customers to say, "I'll have to think about it. I'm not sure we can afford it." But in an economy like this, objections need to be expected.
If you accept these objections and say anything close to "O.K, here's myIt's easy enough in any economy for customers to say, "I'll have to think about it. I'm not sure we can afford it." But in an economy like this, objections need to be expected.
If you accept these objections and say anything close to "O.K, here's my card, call me when you're ready," I promise you, you're not going to hit your own or your company goals. So, you have a few options to overcome these very predictable objections.
Among them:
Discounting or price slashing. Even if your company allows you to discount, be very careful. I'm not talking about honoring printed discounts, coupons or rebates in the marketplace -- that makes perfect sense. I'm talking about giving a customer a "for no other reason than they asked for it" discount because you're afraid that if you don't, he won't buy.
Discounting is a dangerous practice that becomes addicting. It becomes far too easy to say, "Sure, I can do that." In a tougher economy, many jobs get tougher -- sales is certainly one of them. It absolutely takes more talent to get a prospect to part with his money when he has less of it, regardless of what you sell.
When you give a customer a discount, you more often than not just gave away sheer profit. Think about it -- the product still costs the same from the manufacturer; the cost of the overhead and marketing remains the same.
When a prospect is asking for a discount, weak salespeople think that that they are actually saying "I'm not going to buy this from you unless you give me a discount." Strong salespeople understand that isn't true -- most of the time. Many consumers (personal or business) understand that a lot of businesses are struggling right now and may be willing to give price breaks so it doesn't hurt to ask -- regardless of the outcome.
In contrast, when a well-trained salesperson gets asked for a discount, they know that they have just been given a buying signal -- yippee! The first step is to acknowledge what just really happened, telling the customer that you're glad he likes your product or service. Next, nondefensively (almost proudly) justify why your product is priced what it is (quality of parts or ingredients, the predicted longevity, the increased probability of success, the increased time or money savings it will produce, etc.) and then immediately attempt to close again by asking an alternative-choice closing question. For example, "Which package is best for you and your (team)?"
If you are going to extend any type of nonadvertised discount, make certain you get something in exchange for it -- some type of consideration. A few great examples: ask for the names and numbers of (two) referrals; ask for a referral letter; and ask your new customer to send out a small advertisement for you to his database.
Instead of trying to convince a prospect to move forward by offering him a discount, smart companies and salespeople break down the cost of the product over the life of their product, they offer extended payment options when they can, offer discounts for larger or multiple purchases and one of my favorites, gifts with purchase. If you're trying to think of a popular and proven industry that uses gift with purchase, think cosmetics. Ask any women you know how many times she bought something that she was on the fence about because she wanted the neat little gift with purchase. All are proven and profitable strategies to boost business.
Countless people will create great wealth during this economy. Implementing these tips will help ensure that you're one of them.
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