Jim Pancero, Sales Trainer, Consultant, and contributor to the ISD Newsletter and other publications, says there are really only two alternatives available to an organization selling in a competitive market. You can either communicate a message of low price or of increased value and support. No truly competitive market will allow any one vendor to offer both.
The easiest position to win, but also the easiest and fastest position to lose, is that of the lowest price position. But winning business based on lowest price means you have to constantly be cutting your price against your competitors to be able to keep this customer and their business.
The lowest price quoted won’t necessarily be the lowest total cost to your customer. In fact the lowest price will never be the lowest total cost when all costs, opportunities and exposures are considered.
Convincing a customer to want you and your higher prices will require you to quantify your value by financially justifying and proving how much they’ll save due to your unique approach, added services, higher quality, more efficient business practices or lower risk of doing business.
Pancero outlines the best way to build the financial justification for your higher priced proposal by following a six stepped justification process. Click to read the full article, Selling ‘Lowest Total Cost’ Instead of ‘Lowest Price’ Solution.