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Crushing Price Objections Is a Battle of Wills by Tom Reilly, the guy who wrote the book on price objections Crushing price objections is a battle of wills. Will you cut your price or will you hold the line on your price? It’s always a choice you make. No one cuts your price. They may cut their price, but you cut your price. And cutting price is usually the last desperate act of getting a piece of business. You’ve run out of ideas or options. You still have some alternatives to cutting price. First, do nothing and see what happens. Develop a wait-and-see attitude. Is the customer testing your resolve? It may even make sense to walk away from the price objection because it’s bad business. Second, is there a way to build your package through bundling or value adding? If the customer perceives an inequity between your price and your package, building the package is one way to balance the two. Identify ways to add meaningful value to maintain your price. Third, cut your costs. Is there a way to reduce your costs of handling an account? Removing some of the value and cost associated with it is one way to protect your margins while reducing the selling price. Cutting your value—which reduces cost—tells the customer that if they want your value added, they must pay for it. The bottom line is the bottom line. To protect it, you must maintain your margins by holding fast on your prices or by reducing your costs. Unless you sell for a non-profit organization, you cannot continue to “give away” value that costs you to provide. Tom Reilly is the author of Crush Price Objections (Motivation Press) |
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