Sale pitches are not always easy. In fact, you could say that there is an art to selling. There are salespeople who strongly believe if they sell at a lower price, they will increase their overall number of sales with customers. Although it sounds good in theory, most often it’s not true in practice. The price of an item is a factor when it comes to sales, but it isn’t the one and only factor that goes into closing a sale.
Here are some reasons why selling on price does not work:
1. Competitors can come along and offer the same product at a slightly lower price.
According to Miller Heiman, a sales performance company, focusing too much on price and terms can end up shrinking deal size, creativity, ultimately, and profitability. Making a sale all about the price of a product can actually hurt customer relationships because it may come across to the customer that all you care about is making the sale, not about them or their needs.
2. There are customers who are only willing to pay the lowest price.
The best way to sell a product is to show how the product can be valuable to the customer. Although there are customers who only care about buying the cheapest product, in sales it’s crucial to show and explain why and how the product would be beneficial to the customer if they bought it.
3. Customers you attract will see value in what you’re selling at the lower price, but won't see value at the full price.
As a salesperson it is important to show the customer the value of the product at any price. Doing so has a better outcome, than allowing the customer to decide the value of the product based solely on price.
4. There are customers who will bargain for a lower price.
In situations like this, if there is no room for negotiation, it may be in the best interest for both the customer and the salesperson to suggest or encourage that the customer buy from a competitor.
5. Selling at a lower price does not provide the level of profit the company needs to operate.
From the company’s perspective one of the only ways to survive is to make a reasonable profit by selling their products. Selling at a lower price can prevent the company from making the profit that it needs to operate as a successful business.
At WarmlyYours, we sell our product by focusing on the customer’s needs first and foremost. We create a full radiant experience by going above and beyond for our customers, and by offering the high product quality and service. WarmlyYours represents more than just heating products - we believe that radiant heating is a way of life. To us, our brand is not simply a logo or product, it’s our reality.
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