How do you overcome a value versus price objection, “Your hayseed costs 10% more than your competitor’s hayseed?”. Why is it worth 10% more? If you were a knowledgeable farmer, would you spend 10% more to buy it?
Value Versus Price
If you don’t believe your product is worth the price, you have five choices.
Recognize that there may be value that you are overlooking or taking for granted:
- Your company’s experience, reputation, quality assurance, research, because there can be significant value in knowing they are buying from a solid company. You will stand behind the product in the future.
- Convenience. Do you make it easy to buy, because you deliver quickly and inexpensively?
- Your expertise. Do you add value that your competitors can’t or don’t? Do you give expert advice, then take time to understand the customer’s needs. Do you make a recommendation that will work best for her?
- Do you have educational programs that help your customers use the product more effectively or extensively?
- Does your company give back and support the community by volunteering, donating to local charities, or mentoring young people?
- Do you have favourable payment terms, a moneyback guarantee, or warranty that makes buying from you easier?
- Do you provide better customer service? Answers from well-trained, real people rather than automated help desks that screen callers and make it hard to speak to anyone?
- Do you have an emergency help line open 24/7?
You can add value by finding out what the customer thinks is important and including it in your quote, which your competitor may not have bothered to ask.
All things being equal, (and they never are) you might convince your company to add value or lower prices to get the business, but that’s rarely a good long-term strategy.
You might help your company recognize and correct inefficiencies that are costing it money so they can afford to reduce prices or increase the value for price.
Finally, you might choose to work for someone else. If you cannot in good conscience sell your products because you don’t believe they are worth it, and you can’t achieve any of the first four suggestions, then you might as well sell something you can believe in. Don’t compromise your ethics just to make a quick sale.
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