10 Techniques to Negotiating a Higher Price and Winning Over a Lower Cost Competitor

Photo by Andrew Magill

When selling a product that is more expensive than the competition the best price does not always win. There are many techniques to selling at a higher price, but these are the top 10. I hope they help you be more successful in sales.

1) Know your competition.

Be prepared to honestly discuss how your product or service is better and worth the higher price when compared to your competition. When someone brings up something about a competitor you should know more about their product and how it differs from your offering than anyone else. Customers are willing to pay more for what they need. Prove to them that you are what they need, and they’ll pay the higher price.

2) Be confident.

You need to seem and actually feel confident when talking to customers. If you aren’t confident in your product or service, it’s likely you won’t last in sales. I can always tell when salespeople don’t believe in their product, and they usually don’t get my business. It’s also worth mentioning that you will be happier (and come across that way) if you learn to be confident in what you’re selling. You must truly believe that your customer will be better off buying from you and using your product or service. This simple quality will make more of a difference than you’d expect.

3) Understand your customer’s needs.

It’s painful to watch someone trying to sell a customer something they don’t want or need. It’s not a very positive use of time and energy. The simple solution is to know what your customer needs. How do you know their needs? Ask and listen. This will help you identify the customer’s problems and how to approach them about your product.

4) Determine options that your customer will find desirable.

Once you determine how and why your customer needs your product or service, determine what options they have to solve a problem in their business. Discuss how your product can solve that problem, make life easier, make more money, save money, save time, or avoid a future problem. Every business has a unique story with unique needs, and you can be the unique solution to their situation. If you are able to show them this, they will be happy to pay more for what you offer.

5) Never sacrifice value.

There’s nothing customers hate more than a decrease in value.  More importantly, your price should match your value. If your product or service’s value increases, so should your price. Remember, you have to believe in this product and service. You have to believe the price is worth it.

6) Make sure you are talking to someone who has the authority to buy.

If you spend all your time selling to the wrong person, they will have to sell the same idea to their boss. Chances are, they won’t be as good salesperson as you are. That means your effort won’t result in a sale. Instead, find out who has the authority to say “yes” and go after that person. Use the rest of these techniques and close that sale!

 7) Create powerful business relationships.

Strong business relationships can last a career. Referrals, repeat sales, and networking opportunities can make or break a business. It’s important to develop relationships, value them, and grow them as much as possible. Connect with people who you can help (and who can help YOU). Don’t give up on these relationships after you make a sale or even if you lose the sale. People will often buy again in the future, especially if they chose an inferior competitive product or service other than yours.  These business connections can also help you get more customers willing to pay for the value you provide. It’s worth it to make these connections and keep them strong.

8) Ask questions and start a discussion.

Avoid monologues. A dialogue is much more powerful. Ask questions to grow a conversation. Remember that you’ve already determined their needs, so you can set them up through questions to talk about those needs and present options that will provide them value. Questions are a powerful tool. You’ll find that people will love to answer your questions if you are genuine about asking them. It’s a great way to get your customers to feel important and make them comfortable with you.

9) Create a positive vision for yourself.

Get yourself excited. Believe in the sale and make sure you have way more optimism than pessimism in your business life. Customers can perceive your energy and they will feed off your enthusiasm. Positive energy will also keep you going and inspired to close sales and make more sales. When it comes to price, having a positive vision will help convince your customers that your product or service is worth the money. Enthusiasm is infectious. Make them as enthusiastic as you are!

10) Have fun.

Have fun and don’t take yourself too seriously. Be able to take rejection, you probably won’t win every order but with these tips you win most of them.. Most importantly, don’t “bum out” your customers. Make it a goal to have them smiling and excited by the end of your conversation. You are a part of this sale, and a part of the value. The purchasing experience is also part of the value. I know that I enjoy the thrill of making a sale and I enjoy buying something from a salesperson who is fun to deal with. Attitude is everything.

 Photo by Andrew Magill

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