Customers’ Focus on Price is Often Blurry

Sept. 26, 2008 - PRLog -- It seems that buyers have been brainwashed to focus on price.  The constant inundation of price-leading advertisements, according to recent studies, has overwhelmed buyers’ natural inclinations towards quality and value.  It is an effective strategy and favors the bigger companies over small-to-medium sized businesses.  All is not lost, however, for smaller firms – those studies also found that it is very easy to break the advertisers’ spell over buyers.
ActionCOACH founder and CEO Brad Sugars has seen the effect of price advertising on small business owners.  His company provides business coaching services to mid-sized companies that struggle to compete against price-pitching mega-corporations.
“Invariably, our new clients believe they have no choice but to offer low prices to win customers,” Sugars said.  “I acknowledge that customers ask about price first and explain how it’s a reflexive reaction to the price ads.  Then I cite examples of salesmanship that overcame price issues.  The client usually recognizes herself as the buyer in one of those examples, and the truth of my advice finally dawns on her – quality and value, when presented by a professional salesperson, beat price every time.”
It’s true.  More often than not, buyers approach a small business unsure of the model, style, color, or some other feature of the product or service they seek.  Trained to do so, they will ask the price as a point of reference; however, the successful sales rep can usually initiate a dialogue that finds the customer very willing to discuss his needs, requirements, and buying motivation.  Grateful for the attention and service, most buyers will quickly move price lower on their list of priorities.
Sugars recommends that sales reps execute a four-step process:
1.  Demonstrate sincere concern for the buyer’s needs.
2.  Establish expertise in the subject and exhibit a willingness to assist.
3.  To earn the buyer’s trust, describe alternative solutions.  Recommend the best solution and explain why, but offer a lower cost option as well, and note the differences.
4.  Assume the sale by instigating the purchase transaction, but continue to offer service by asking about payment and shipping options.
If the small business does offer a quality solution at a fair price, most buyers will choose the service and quality of the attentive sales rep over bargain basement prices.  The key is to establish trust.  


About ActionCOACH

ActionCOACH is the world’s number one business coaching firm, with more than 1,000 offices in 26 countries.  To learn more about business coaching and ActionCOACH, go to actioncoach.com.