… Without giving a discount
In our previous blog we shed some light on the most common mistakes in the quotation process. After sending your quote, it can occur that a customer doesn’t agree with your price. That’s good news! If you’re discussing the price, the customer is at least interested in your product. Now it’s vital to defend your quote and explain to your customer why the price is right. We give 6 tips on how to stand your ground.
1. Be concise
You must be able to explain the price on your quote at all times. Don’t hold back on information. Only a final sum will definitely lead to questions. That’s why you should state working hours, used materials and – if relevant – research.
2. Break it up
Place figures into the right perspective for your customer: “Okay, this might be the total cost, but let’s look at the lifespan of this product. What does it cost per year?” Or maybe even better: per month or week? Breaking up the price into little pieces makes the price appear to be lower.
3. Explain the difference
Try to find out which competitor you are being compared to and what the differences are. It’s fine to ask about this based on the proposition to offer an extra service, without mentioning the word discount. Listen carefully to the customer and ask concrete questions about the competitor’s quote. Then focus on the difference and explain what they’re gaining. Think of an extra service or free installation.
4. Discuss negative experiences with cheap deals
You get what you pay for. Your potential customer is aiming for a lower price. It’s your job to bring up the downsides of cheap products. What about the used materials, the lifespan or the warranty offered by the competitor? These are issues that make for a happy or unhappy customer. Respond to any feelings that you might trigger when asking about previous negative experiences with cheap products or services.
5. Focus on the services that you don’t charge
Complaints about an overrated price can be deflected by explicitly mentioning all the services you are not charging. This could be anything, such as warranty or installation fees. In addition to your product or service, you’re also selling a good feeling. That positive feeling can be enhanced by focussing on these after-sales items that won’t appear on the invoice. This gives your client the feeling that they’re getting something extra.
6. Remind the customer of his buying motif
Remind the client of his original wish. The client has a problem and is asking for a solution. The quote presented by you is the solution to his problem. Purposefully direct the conversation towards his buying motifs, where it all started. This is something that tends to be forgotten the last stage of the buying process because the focus is on the price.
Would you like to find out how to write a winning quote? This white paper explains how to optimise your quotation process with Sofon: Winning Quotations
. Good luck!
Follow our LinkedIn
company page to stay informed of all our blogs.