One of the most common sales problems that clients come to me with involves presenting price. Usually they say it’s because they don’t know how to do it, but in my experience it often comes down to a lack of confidence. Presenting price correctly will lead to easy sales.
Talking about price during the sales process can be hard for a lot of business people, but YOU NEED TO DO IT!
Consistently presenting price correctly will win you a lot more business than you realise, but you have to still do the right thing at the right time.
My neighbour is a case in point
I’ve known my neighbour for over 40 years. In fact we went to the same primary school and to save his blushes I shall call him Rob, which as you might have guessed is not his real name.
Rob gets contract work for several months at a time. It pays well, but it is not regular so he does have long periods of no work. Whilst he is waiting for a new contract to start, he does gardening jobs for some of his neighbours who are struggling to keep on top of their lawns or hedges. He makes a great job, but he has one big problem which is stopping him from making the most of this opportunity.
He is rubbish at presenting price. Truly bad at it.
Why Rob is bad at presenting price
I know because my husband is currently struggling with a bad back and being a girl, I am banned from touching the precious lawnmower. It’s a man job I’m told!
So respecting my husband for his care and consideration, I asked Rob how much he wanted for cutting our lawn and strimming the edges. Despite trying several different ways to get him to tell me what he would charge, all he kept saying was,
“Just pay me what you think the job is worth.”
So frustrating, but eventually I agreed and after he did the work we paid him what we thought it was worth. He said he was happy with that and would we like any help with the evil Virginia creeper taking over the garage.
Asking for more work is definitely not something that Rob has a problem with. Just presenting price.
What is Rob’s problem?
I asked Rob why he didn’t quote a price to people and relied on them paying what they thought he was worth. He said that he didn’t want to charge more than people could afford.
However, he then went on to say that he did six hours working for another neighbour using all his own tools and fuel, but that they only gave him £40 (or just over $50 if you live the other side of the pond). Therefore, Rob told me that he had decided not to work for them again as it wasn’t worth it for that price.
This made me think about what could Rob do differently to sell himself better and stop my neighbours gardens starting to resemble the Amazon jungle.
How Rob could present price better and make more money
There are many things that Rob could do differently to present price better. I reckon it’s all about doing so in a way that means he wins the right kind of business that makes him good money. The same applies for anyone who lacks confidence in presenting price.
- Have a price list – Either share or clearly indicate what your prices are. Simply stating a “Prices from xxx” on your website or marketing literature will help. If applicable to your industry, showing a simple price list to prospects with a value against each activity, or an hourly rate would be a good start. It helps to set expectations so the client knows exactly what they will get for their money.
- Research the market – Check out what competitors are doing in the area. If you are offering an identical service then you may need to dip your price slightly, or offer more value to win some of their clients.
- Present value – Describe exactly what your prospect will get, before you mention price. At the same time remember to link each feature to a benefit. In Rob’s case this could be that when he cuts the lawn he brings his own fuel, so his clients don’t have to go to the local garage and fill up a fuel can, which can be an additional cost in terms of time and money.
- Discounting and Packages – Offering discounts for repeat business, or more services for a longer commitment are a great way of demonstrating value and reassuring the prospect.
- Practice your pitch – Practice presenting price will help you come across as more natural and confident with your product or service. By avoiding the topic of price you could come across as potentially deceitful, so practicing will ensure a more relaxed presentation and a better result.
The key is to get price out in the open as soon as possible. By doing so you will appear open and honest in the way that you do business. The other benefit, is that you will be able to qualify out a prospect who does not want to buy, leaving you the time to move onto the next potential customer.
Your prospects need your product or service, but they also need to know what it will cost and the value they get from it.
DON’T LET YOUR POTENTIAL CUSTOMERS DOWN BY AVOIDING THE SUBJECT OF PRICE!
However, if you are consistently qualifying prospects out then that might be the point to reaccess your pricing strategy. If you want to discuss if you have the right pricing strategy, then apply for one of my FREE Sales Accelerator calls. I promise you that whether you want to work with me, or not, you will discover a lot of value from the session.