Rate Becomes an Issue when Value is not Perceived
Why adding value should be one of your primary focuses.
Have you ever lost a deal over rate? Over price? Yes, I am sure you have. In fact, we all have.
Can I be honest with you? I think I can. We have a safe and judgement-free zone here. If you are losing deals over rate or price, it may not be due to your company’s rates — YOU may be the problem!
The client called you, right? They may have even called you after a competitor that had an amazing price. But, they still chose to call you. Where does your mind go? You may assume that they called you to compare prices, so you go straight into price comparison with the other company. But what most customers really want is not the lowest price, but the most value for their money.
Girlfriends, I want you to hear me on this: Value does not necessarily mean “lowest price.” Someone will always have a better rate — so the best way to overcome a price objection is to add more value.
That’s right, add MORE value.
You are experienced, professional, will get the job done, and probably have a number of other things you do extremely well (and probably do them better than most of the competition), but rather than share those skills with your client, you went straight to “rate match” to add your value.
I want you to remember that price becomes an issue when value is not perceived.
Let’s take a moment to read that again: rate becomes an issue when value is not perceived.
Have you ever paid more for something you knew you could get for a lower price somewhere else? I know I have!
A few years ago, I needed patio furniture and found a set online that I planned on ordering. Just out of curiosity, I stopped at a local store to see their selection of patio furniture. As it turns out, they had the exact same set that I originally wanted, but it was at a significantly higher price than the listing I had seen online.
At the end of the visit, I purchased the set from the store. You might be asking, “did the sales representative give you a price match?” No, she didn’t. “Could she have it delivered sooner than the website?” No — it was actually going to take longer!
So why did I choose to purchase from the store instead of the website? I will tell you! While I was at the store, my sales representative never asked a manager to lower the price, and she didn’t try to trash-talk her competitors. Rather, she talked about how she was local to the community and that she was grateful to work for a company that treated her so well. She talked about the way her employers supported her, the care the company provided their staff, and shared several rave reviews that the store had received. She also assured me that if I had any issues with the purchase, she would handle them personally to make sure that I was taken care of. After our interaction, I was so thankful that this store and sales representative were in my city, and that the money I spent there would add value to my community. The sales representative truly believed in the product and her company, and she made me understand all of the value that I was receiving with my purchase.
Here is what I hope you can take away from this story:
1. Price becomes an objection when value is not perceived. I want you to start asking yourself “How can I add more value to my client’s experience?” We are going to focus on this topic all month long, and I have great ideas to share with you how to add value, overcome price objections, and exceed the competition. So make sure you follow along!
2. My sales representative took a genuine interest in my needs and what value I was looking for with my purchase.
3. She took the time to explain the value her company and product would add to my experience as well as to the community. She assured me that she would help me every step of the way, even after my purchase! This drove home the idea that I was getting more value for my money by purchasing through her instead of through a website.
4. She did not try to hide the fact that their prices were higher and that delivery time would take longer than the website. But she was transparent with me from the start and gave me realistic time frames and price expectations. I appreciated her honesty and the way she treated me like a valued friend.
5. She sold her strengths (community based, long after the sale they will service us, and excellent reviews on social media)
I encourage you to take some time over the next few days and think of what your strengths are and embrace the belief that you are worth whatever price you need to charge! Write down a few ways that you can add value to your client’s experience!