What to do when you can’t lower your price

Colleen – “What can I offer my client when I can’t reduce my price?”

Despite how you may feel, and what you may be feeling in this unstable economy it’s not always the person with the lowest price that wins the business. In fact a recent news story in the Globe and Mail reported that luxury retailer Hermes had a 40 person waiting list in Calgary Alberta for the Birkin bag  -which retails for between $8,000 – $170,000. Sure, if you are selling to Wal-Mart, it’s ALWAYS is the lowest price that wins. IN many other cases though its not. Consider also that Audi Canada just announced record sales in 2009 – not the cheapest car out there that’s for sure.

In many cases, clients realize that those vendors with the lowest price are not always the best vendors to do business with. They are looking for more value. Here are some ideas to try that will resonate with many buyers.

1) Be irreplaceable: One thing you can bring to the table that other people can’t is the value of dealing with you. Set yourself up as the “go-to-guy” inside the account by providing your clients with access to other business contacts that can help them grow their businesses. Can you provide ideas, or access to information that will help them bring in more revenue. Do you have years of industry knowledge that your rookie sales competitors don’t? A great idea is to deliver value to your clients regularly is to start a monthly newsletter of industry tip trends and news. Staying in front of your clients monthly with high value information will What ever the case, find an angle that helps prospects understand the extra value they get simply by doing business with you.

2) Make it easy: Most prospects are busy and the easier you can make their lives the more valuable you become. Remember in our hearts, people are lazy. In your market that might mean quicker shipping and delivery, less paperwork, or phone calls each time they need to reorder, a customized web page for their use, or an exclusive telephone line. Consider what you can offer that simplifies the buying process.

3) Focus on the Long Term: Relationship selling is the key. On way you can work around price is by offering prospects a long-range contract with volume discounts and rewards or purchases made over time. This is a strategy that promotes loyalty as well as giving prospects a good reason to do business with you.

Dedicated to increasing your sales (and your margin)

Colleen