Do We Win or Lose Based on Price?
Of course we do. But it’s not that simple.
Ask a salesperson why we lost a deal and you’ll hear one of two answers: The price was too high or the product wasn’t good enough. Ask him why we won and you’ll hear it was because he had a great relationship with his customer. Of course all these things matter, but they are rarely the driving factors.
First, price is involved in every purchase decision your customers make. Every time a customer buys from us, price was an important part of that decision. Not the only part, but important. Sometimes we price too high so yes we lose on price. But that’s because we didn’t offer enough value for the price we were asking. We should be striving to learn what our customers value and charging appropriately.
Here’s the important point today though. Sometimes we lose a deal before the prospect even sees the price. Then it doesn’t matter what price we charge. Our prospects may eliminate us early in the buying process. Maybe we didn’t make the first page of their google search. Maybe we didn’t have good enough Yelp reviews. Maybe our marketing wasn’t clear enough for them to understand we solve their problem. Regardless, we likely lose many deals before price is even a consideration.
When we are talking to our market, learning why we win or why we lose, (you are doing this aren’t you?), make a special effort to find some situations where price wasn’t even considered. When we lose very early in buying process something else needs fixed. We need to know what that is. Find companies who bought from our competitor when we didn’t even know they were in the market. Ask, with sincere curiosity, how them arrived at their decision. We have a lot to learn.
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