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SAVVY
SELLING - AUGUST
24, 2006
Softening
Them Up
By Michelle Nichols
EXECUTIVE
OVERVIEW
Nine fresh ideas to overcome
the price objection.
Here are nine novel
tactics to help you sway prospective
customers who think your prices
are too high
After our RV broke down for
the fourth time in the first
two days of our recent vacation,
my husband and I dragged ourselves
into another repair shop. The
repair clerk began his spiel
about how much the problem would
cost to fix—a lot—and
how long it would take—not
quick. Hoping for some mercy,
we recounted the highlights
of what we had already been
through. His answer made me
laugh: "Oh, then you're
already softened up."
Wow—I'd found a new tactic
to overcome price objection:
humor. Since most of us have
customers who tell us, "Your
price is too high," this
is an important topic. Our repair
man's response worked because
it was funny, real, and put
his pricing into perspective
relative to our recent repair-buying
experiences.
Here are eight more strategies
from my files that other businesses
have used to support higher
prices and some questions to
consider in developing your
own tactics. The benefit of
being better at overcoming price
objection is that you can increase
your sales results without any
extra selling effort.
1. Try Your Luck.
Alan Perry, a jeweler in Wilmington,
N.C., offers a money-back guarantee
on diamond rings if it rains
at least an inch on the couple's
wedding day and the rings are
purchased at least 100 days
before the wedding. This has
a lottery aspect to it, but
you can't argue with results—Perry
reports sales have quadrupled
since he started the program.
I read about Perry in Glamour
magazine.
Is there an attention-grabbing
money-back guarantee you could
offer?
2. The Gilded Edge.
Here's an example of
a great strategy I found in
the Los Angeles Times: Twelve
years ago, Los Angeles gas station
owner Paul Moghadan spent an
extra $5,000 remodeling the
station's unisex bathroom with
a chandelier, art, floral arrangements,
an Italianate slate floor, and
gold-plated water fixtures.
Moghadan has customers who make
a special stop to use his facilities—but
first, they have to buy some
gasoline. The bathroom door
sign reads, "Restroom for
gas customers only."
What benefit could you offer
that's unique and outrageous?
Perhaps exquisite gift wrap
or an invitation for all your
customers to a behind-the-scenes
tour of your local zoo. Think
Las Vegas-style big.
3. Print It Up. Pricetag
Pro sells software to retailers
to use to produce very descriptive,
standardized product information
tags. This helps customers compare
various offerings easily and
keeps the sales momentum rolling.
Without this information, salespeople
often have to leave the sales
floor and go look up the data—or,
worse yet, call the customer
back later. As Chris McGinnis
of Wayside Furniture, a Pricetag
Pro customer, says, "If
[customers] stay here in the
store, closing the sale is 100%
easier."
When I met the president of
Pricetag Pro, Mike Kneeland,
he told me that customers are
far less likely to negotiate
prices when they see professionally
printed price tags rather than
handwritten ones.
How could you offer more printed
information so your customers
don't shop elsewhere? Bear in
mind it must be presented in
a way that is easy to understand
and doesn't overwhelm your customers.
4. Increase the Options.
Paccar makes Kenworth and Peterbilt
big-rig trucks, which cost up
to 10% more than rivals. But
because of their thousands of
options and tremendous focus
on quality, they're the leader
in their industry (see BusinessWeek.com,
1/30/06, "Paccar: Built
for the Long Haul"). Herbert
Schmidt of Contract Freighters,
a customer for 20 years, says
when he factors in reliability,
trade-in value, and the plush
interiors that attract better
drivers, the premium price is
worth it.
On a significantly smaller
scale, most retailers sell a
small bag of traditional M&M's
candy for less than a buck.
However, if you want four 8-oz.
bags of custom-printed M&M's
in one or two colors, the candy
company sells them online for
$38.
How can you offer better quality
and customization in areas where
your customer would be willing
to compensate you? Perhaps you
could offer custom colors, more
choices of manual languages,
special training, or personalized
products. You might also implement
a quality program.
5. Trim It Down.
I've discovered that if your
customer can't afford your price,
find a way to sell them less
benefits for less money. Perhaps
you could sell them a lower
starting quantity or a shorter
warranty period.
How can you scale back your
offering so more people can
afford it but you maintain your
profit margins?
6. Sales Anesthetic.
Borsheim's, a high-end jewelry
store in Omaha, has a Ladies'
Night in early December when
women can make out their wish
lists. A week later is Men's
Night, with free pizza and beer
and big-screen TVs showing sports
and movies. The male shoppers
come in, ask for their significant
other's list, and make their
purchases. In an Associated
Press article I read, Mike Galaska,
a customer from Bellevue, Neb.,
says, "Whatever [the saleslady]
brings, I'm going to buy."
How can you make it less painful
for your customers to buy from
you?
7. Productivity Perk.
The Grill, one of the restaurants
I've patronized that's favored
by the business crowd in Reno,
Nev., offers attractive writing
tablets on each lunch table.
Sure, the restaurant has its
name and contact information
on them, but there's plenty
of white space for customers
to take notes, make sketches,
or brainstorm.
How can you help your customers
be more productive while they're
buying from you?
8. Educate Your Buyer.
In another Associated Press
story, I learned that Cargill,
the large U.S. meat-packing
company, found that its younger
customers frequently didn't
know how to cook the tougher,
less popular cuts of beef. Since
it needs to sell all the parts
of the cow, the outfit put instruction
labels on packages and offered
online advice and promotions.
How can you help your customers
use all of your products more
easily and happily?
I hope these strategies and
questions have given you some
great ideas on how to overcome
your customers' price objections.
If you use one I haven't mentioned,
please share it with readers
in the comment box below. Happy
selling!
Michelle Nichols is a
professional sales speaker and
consultant based in Reno, Nevada.
She welcomes your questions
and comments. You can visit
her web site at www.savvyselling.com
or contact her at michelle.nichols@savvyselling.com.
Her toll-free number is (877)
352-9684.
Copyright 2000-2006. All rights
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