Do you ever say things that you wish you could take back? I’m sure you do–especially when it comes to lowering your price. Sometimes you get caught off guard.  You can prevent hurting your business when you say something you’ll regret later.

What are you saying?   Just imagine if a customer said, “I can buy your product cheaper from your competitor.”  How would you respond?  I hope it’s not, “Thanks for letting me know.  I can lower my price.”  That’s the wrong answer. A salesman recently told me how he responded this way and added, “Well, you know we have a price matching policy.”  He then cut his price. 

Ouch.  Price matching policy or not, when you immediately match a competitor’s lower price what you do is send a dangerous signal to your customer. You signal that all you have to offer is a low price and nothing more.

It’s elementary, my dear Watson.  Don’t immediately match a competitor when you learn of a lower price.  Instead, do some detective work.  Do your competitors provide the same level of service as you?  Are the products truly identical? In this case, the competitor’s price didn’t match the current supplier’s faster and reliable service. 

When I asked the salesman what would happen with a service delay, he told me about numerous, expensive legal penalties that his customer would have to pay.  I asked him if he had discussed this with his customer. He hadn’t. That was a mistake.

No business professional wants to save a few bucks only to be open to thousands of dollars in liabilities as a result.  What this salesman should have done was to begin a sales conversation about his customer’s needs, the consequences of not having the needs met and what the salesman offers.  Then he could demonstrate that his service was worth a higher price.

Get back to basics.  You have to be prepared to have these kinds of conversations.  What parts of your product and service are unique and worth paying more for?  Now would be a good time to start learning if you don’t know how you stack up against your competition.  Know what their strengths and weaknesses are.  Now look at your own. 

See which of your customers need your strengths.  Look at your business and know which competitors can’t match your strengths.  Breathe a sigh of relief.  These customers are less vulnerable to your competition. 

You do need to find your vulnerable accounts so you can avoid having to lower your price.  Vulnerable customers are those that don’t need one of your strengths.  Their vulnerability isn’t certain when you uncover these accounts. You might be missing something.  Maybe your customer could value something you offer and you haven’t discussed it with him yet.  Schedule an appointment and discuss it now. 

Go ahead and lower your price if you can’t distinguish yourself from your competition. Just remember, if you don’t know why a customer should pay more for what you sell, you’ll end up saying something you’ll regret later.  What you’ll say is, “Sure, I can match that price.”

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