Low price is not your customer’s biggest concern. Their biggest concern is… “am I making a mistake if I buy the cheaper one?” Most people have learned from experience that you typically get what you pay for. Lower cost products are usually priced lower for a reason.
I’m not talking about selling value or focusing solely on product features. Customers rarely buy the best value but they can be counted on to buy the alternative with lowest risk.
If you are a salesperson that is up against a lower cost competitor it’s your job to get the buyer to understand the risk of not going with you and your more expensive option. Ask them questions that make them think about the consequences of making the wrong buying decision. What problems could arise? What is the cost to fix the problems? How could a bad decision negatively impact them personally?
Then position yourself and your option as the lowest risk alternative. Here are four strategies to do so.
Build solid, deep relationships with the key decision-makers. Relationships mitigate risk. The greater the relationship, the lower the perceived risk. That’s why the salesperson with the longer relationship almost always has the benefit of the doubt in a competitive situation.
Make ample use of, customer and project lists, case studies and references. All of these tell the customer that someone else, or lots of other people, have used your product or service. That means it is less risky for your customer to buy it from you.
Get your customer as physically involved with the product as possible. For example, visit somewhere the product is being used, let them talk to another happy customer, or provide a physical product demonstration. The more your customer can see and feel the actual product the less their perceived risk will be.
Highlight features or create offers that reduce the risk. Be sure to tell them about your product warranties, award winning service departments, as well as unique product features that make your option better in terms of safety, durability and reliability all of which greatly reduce your customer’s perception of risk.
The winners in today’s competitive selling arena are those who are the low risk providers, not the low priced guys.