Shifting from Price to Value
On the opening sales call, when a prospective customer asks, “What’s the price?”, should you tell them? After all, maybe they are sincerely curious and it seems like a normal question to ask.
But what is really the customer’s motivation behind asking the question? Think about it . . . in every day life, do you ask the price question regarding a product or service you know you want? Of course not; you likely only inquire about the price when you are skeptical about its value or have a bias against it.
There are a variety of reasons for the skepticism or negative bias: satisfaction with an existing solution, a predisposition for another vendor, or a lack of belief that the need even exists, among others. Regardless of the reason for skepticism, the reality is that there is far greater downside than upside to providing the price at this point.
So, given that backdrop, should you divulge your price on the first call? The short answer is NO, despite the sometimes aggressive attempts by the prospective customer to drive you (even shame you) to respond. Instead, you should explain that your price is driven by a variety of factors (parameters such as number of users, types of users and contract duration), and providing a price at this point is premature. Moreover, without knowing these parameters, any price given is going to be wrong (and maybe way off).
Ultimately, the conversation must shift from “price” to “value” as you explain the financial value gained from our customers as a direct result of the unique features of our software. Absent this element you have not been allowed to present a business case which we know from prior discussions can raise the likelihood of winning by more more than 50% (The Real Meaning of a Strong Business Case). Instead of getting “qualified out” on price, get “qualified in” based on value.
This shift away from price to value sets the stage for a compelling business case that should be the cornerstone of the sales cycle. If your team needs help with this value focus, please either ask Virtual Dave or email dave@moicpartners.com.
Virtual Dave is an AI-based virtual sales support tool trained on 40 years of enterprise software sales experience, available 24/7 to enhance sales process consistency.
