Pricing is one of the most challenging aspects of outside sales. You want to win the deal, but you also want to protect your margins and avoid unnecessary discounts. How can you balance pricing and value in outside sales, and communicate your offer effectively to your prospects? In this article, we will share some tips and strategies to help you achieve this goal.
Before you quote a price, you need to understand and articulate your value proposition. What are the benefits and outcomes that your product or service can deliver to your prospect? How do you differentiate yourself from your competitors? How do you align your solution with your prospect's pain points, goals, and priorities? By answering these questions, you can position your offer as an investment, not an expense, and justify your pricing based on the value you create for your prospect.
Outside sales are done majorly with good relations with clients. If you deal with a new customer we should be good listeners try to understand their pain area and then start pitching your product from the pain area when the customer is ready to listen to your points so you are the race this is how you build your value. Price I never compromise my price if the customer doesn't compare my product with apple to apple.
Another key factor in pricing is market research. You need to know the average price range, the competitive landscape, and the customer's budget and expectations in your industry and region. This will help you avoid underpricing or overpricing your offer, and adjust your pricing strategy according to the market conditions and demand. You also need to research your specific customer, their industry, their size, their financial situation, and their decision-making process. This will help you tailor your offer to their needs, preferences, and constraints, and avoid unnecessary objections or negotiations.
When you present your price, you can use some psychological techniques to influence how your prospect perceives your offer. One of them is anchoring, which means setting a reference point that makes your price seem more reasonable or attractive. For example, you can start with a higher price and then offer a discount, or compare your price with a more expensive alternative or with the cost of inaction. Another technique is framing, which means emphasizing the positive aspects of your offer and minimizing the negative ones. For example, you can focus on the value-added features, the return on investment, or the long-term benefits of your offer, and avoid mentioning the drawbacks, the risks, or the limitations.
Even if you have a strong value proposition and a competitive price, you may still face some objections or negotiations from your prospect. It's important to handle them with confidence and professionalism, without compromising your value or your margins. To do so, anticipate common objections and prepare responses that address them. Listen to the prospect's concerns and empathize with them. Ask open-ended questions to understand their needs and motivations. Utilize testimonials, case studies, or referrals to build trust and credibility. Offer value-added incentives, such as free trials, extended warranties, or additional services instead of lowering your price. Lastly, be aware of your walk-away point and be ready to walk away if the deal is not profitable or fair.
The final step in balancing pricing and value in outside sales is to follow up and close the deal. You need to maintain contact with your prospect, send them a clear and concise proposal, and confirm their agreement and commitment. You also need to address any last-minute questions or concerns, and overcome any delays or obstacles that may arise. You can use techniques such as urgency, scarcity, or reciprocity to create a sense of urgency and encourage your prospect to take action. Finally, you need to ask for the sale, get a verbal or written confirmation, and celebrate your success.
When trying to get new customers it can often be difficult to demonstrate your value. In these cases I've always asked the customer for an opportunity on something smaller and less important so that they can evaluate my performance with minimal risk. If you're able to live up to the value proposition and the standards of quality that you sold them on on that small job you're way more likely to get shots at bigger ones.