Many organisations get hung up on trying to reduce prices, under pressure from the sales team who would love to be able to sell the same product at a lower price.
Yes, price is important to the customer, but largely only when all other things are equal.
What tends to confuse many salespeople is seeing customers not buying what seems to be the best value. Customers know what they want though, and it’s seldom the best price or even the best value – it’s what’s perceived to be the lowest risk.
The lower the risk to the customer, the less important the price. If your product could save me £100, and I don’t know anything about you, I’d rather pay £50 for it after it’s saved me the money than £10 before it’s done so.
How do we reduce the perceived risk of buying our products?
First, build trust with the customers. More experienced salespeople have a massive advantage here.
Second, demonstrate the success of the products. The value of case studies and testimonials is criminally underrated. Trials and physical demonstrations of existing uses may be expensive to set up, but they can pay for themselves.
Third, literally reduce the risk. Offers, free trials, money-back guarantees, great support – there are many ways to achieve this. Again, there’s an expense involved, but it’s less than reducing the price.