When You Lose On Price, You didn't Lose On Price
This is an except from a blog by Ian Altman - it is just too good to not share.
What If It Actually Is About Price?
I’m covering this section just to be polite. I promise that it is almost never about price. But, if it is, here is what probably went wrong. You jumped to what you were selling instead of focusing on the issue they needed to solve. You failed to engage the customer in a discussion about their past experiences in similar projects. You did not share stories about issues other clients faced that you helped to solve. In short, you did not do anything to help you stand out from the competition. So, you reinforced the customer’s initial belief that you were just selling a commodity.
In many cases, the seller is the one who frames the discussion about price. You might ask your potential client how much they are paying their current provider. At that point, many sellers will say, “Maybe we can get you a better deal.” What if instead you asked “0-10, how happy are you with the current provider?” You can either provide a better outcome, or a better price. Without a better outcome, why would they switch to you other than price?
- it is quite simply brilliant.