Defending Your Price
Sometimes customers do not question the price of your product, even if they do not understand why it is so high, and are thinking:
- - The price is high because of the Marketing
- - It is because there are always customers ready to buy
- - Because it is a niche product and “the happy few” have to pay more
- - General costs are too high in Europe
- - That is how brands can make money
Customers tend to think that price is not related to reality, and even that it is arbitrarily set. It is up to the sales advisor to explain the reality of what the price tag means.
In order to do this effectively, sales advisors first have to be convinced themselves about the price of the product.
Quality costs money and there is no free lunch. A price is not a Marketing game but reflects a level of quality and sophistication. It is an expression of the brand’s expectations but also customers’ expectations. High-end and affluent customers do not look for a low-priced product but they do look for the best possible quality. They know how to appreciate the added value if it is well explained.
HOW TO: DO NOT FORGET COMPETITION
Managers tend to talk a lot about their own brand, with pride of course. They say why their brand is the best and why their prices are unbeatable. But they forget that competitors are doing the same thing. Customers do hear from other brands. There are different, very efficient and cost effective ways to increase competitive knowledge. Get all the printed products catalogs from the competition, including subscribing to their newsletters; get online catalogs too. And do market visits, surveying the competition to see novelties, and learn with your own eyes, which are just like your customer's eyes.
The more added value a sales advisor is able to communicate to a customer, the less chance that the customer will challenge the price.
We will more specifically talk about objection when we study the different price objections. The best way to prevent price objections is to defend the price before any possible objection is put forward by the customer.