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Let’s Talk Pricing

Have you noticed that price is not the major topic of discussion when it comes to customer expectations?

You see, the reality about price is that the customer expects the right price, which does not automatically mean the lowest price. A key skill you must acquire to become top sales performer is the ability to explain and sell value. What is the difference between “price and cost?”

The point is that competitive advantage is not about price; it’s about value. So what are the products’ value propositions?

This is not just the features and benefits. It’s about what value the features and benefits actually provide for the customer. What are your company’s value propositions? What are your personal value propositions? Why should the customer do business with you; with your company?

Price is Not the Same as Cost:

Many factors related to the transaction between the supplier and the customer relate to cost. These factors can often increase or decrease the total cost of doing business with your company. In fact, these factors are capable of turning a low price into a high cost, including such things as:

Quality defects

Partial shipments

Availability

Packaging issues

Shorter life cycle

Higher repair costs

Limited warranty

The difficulty of doing business with you

These are just a few examples.

via Let’s Talk Pricing. – Saturday, 15th November 2014 at 4Hoteliers.

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