3 Traps Salespeople & Owners Fall into when Introducing Price

 3 Traps Salespeople and Owners make fall into when introducing Price

Welcome back Sizzlers. Very exciting episode here today. I have entitled it The Three Biggest Traps People Fall Into When Introducing Price.

Yes. We're gonna be talking about price today. When should you introduce the price? How should you talk about price? Now I've been in hundreds of face-to-face sales meetings with other salespeople and business owners. I've sat in even more listening in onto telephone calls, and what I've noticed is that 90% of the time those salespeople and business owners are uncomfortable when discussing

price. Now, I'm not saying that they ignore price completely, although some do. But their behavior subtly changes when they shift to talking about the price and they communicate this uncertainty and this unease and this tension subliminally to their prospects. And the prospects also notice this and become

uneasy or tense, or see it as a moment of weakness on your point, an opportunity to negotiate.

 Here are the three biggest mistakes made when talking about price.

Number one, price is not discussed at all.

Number two, the price is introduced too late in the sales process, and

number three, see this a lot, price is seen as a negotiation, as a starting point, not an absolute value in and of itself.

So let's take that first one where price is not discussed.

Look, you can't close the sale without the prospect knowing the price

 The prospect has in their own mind to do the price value equation in their head.

So you've got to give the price and you should be comfortable with giving the price. And one reason for maybe not giving the price too early is you think they're just gonna get the price and shop around. Well, you shouldn't be frightened of your competition if the value that you offer, the service, the experience, the way that you interact, as we've talked about on this podcast, you can demonstrate you are a higher caliber professional, that you are, have a higher level of service, that you are attentive to your prospect's needs.

So you'll be standing head and shoulders in front of somebody else. So you shouldn't be worried  that they're gonna shop around. The market is the market and they'll see that whatever price you talk about it's somewhere in the range.

The reason that perhaps we don't offer the price is because we think that it's too high, or we think our prospect is going to balk the price, and it's going to be a challenge.

And I hear a lot of people You know Mick, what we need to do before we introduce the price, we've gotta talk about the value of what we do and the benefits so that when we do introduce the price, the price seems to be insignificant in relation to all of the value and benefit that we deliver

Now I can understand that argument. You, you probably do it, but it seems to make sense, right? The juxtaposition of price and value and when value exceeds price, price becomes irrelevant. I agree with all of that. But the point here is in most sales situations, most business to business sales. Certainly research shows that the buyer will have done a considerable amount of research before approaching the salesperson. If you're gonna go buy a car, you know how much. If you're gonna buy  a. BMW seven series with all of the bells and whistles on it, you know how much that is gonna cost, right?

You know the range. And so 50%, 57% of the buyers purchasing journey is completed before they even approach you.  They have an idea of what it's gonna cost. You're not going to shock them or undermine the sale. So, talking about the price, Isn't going to end the sales process or disqualify you or have your prospect running for the hills.

The reason that we don't either offer the price at all, or we introduce it way, way late in the sales process is because we, as the salesperson or business owner feel uncomfortable in justifying that price. And if you have a lack of commitment to the price that you're charging, you don't have the belief or the confidence to state it with conviction.

That means that you are not, you're not compelled. You're not compelled enough. So you really need to believe in what you are doing and that you are gonna get that sale because you know it will benefit the customer, their lives will change, their business will improve, their results will excel.

You've gotta believe that internally, and it doesn't matter if your price is twice that of your competitors. If you believe truly that your product or service in the way that you deliver it  will give that experience then you should be shouting from the rooftops in order to compel your prospect.

 So number one  when the price is not discussed, you can't get the sale cuz they can't make a decision without the price,. And you don't introduce it because you don't have the belief or the conviction.

you need to introduce the price early in the discussion very, very early on, maybe even the first sentence or two of your conversation. Because otherwise you know this. You're thinking, oh, when, when are they gonna tell me how much this is gonna cost? I just need to get it in. Get that out of the way, and then you can clear your mind as a prospect. You can start to absorb what they're saying because you know what it's gonna cost.

Right. You know what the investment's gonna be. Right now I'm gonna. Listen to what does this mean for me? How can I justify spending that amount of money? So get the price, out early, very early on in the conversation. I'm gonna give you a couple of examples of how you might do that.

Let me give you an example that I heard at a 10X workshop I had with Grant Cardone. Let's imagine that you are a dentist and you're offering a complete transformation of somebody's smile, right? You're putting in teeth implants. It's a big cost in $14,000, let's say. And so if you are the dentist offering this, You might say to the very nervous prospect, you'd always, I'm always nervous when somebody's talking about taking teeth out and putting and messing in my mouth, so I'm already, I'm already tense.

 I'm wondering whether I should really do this or not. So the dentist might say, before I get to the benefit, let me share with you our pricing so that you can make sense of the value proposition. I am gonna show you how we will take your old teeth out and put new teeth in, and you're going to have the most amazing and beautiful smile in, in the world.

But before I tell you how we're gonna do it and how long it takes and why you're gonna do it with me here, I want to tell you how much that's gonna cost. It's $14,000. Because only you can make sense of that, right? Because you can appreciate what that smile and that full set of teeth is going to do for you.

So there we talked about the, the price very, very early on. Now here's the thing about the value is a very personal thing. You could say, here are all of the benefits. So that would be me, mick, the dentist saying, oh, you're gonna have a beautiful smile.  You're gonna have confidence.  You can eat all those foods that you've been a avoiding because you're worried that your teeth were going to fall out, et cetera.

But it's only when your prospect says those things or thinks those things that it's truly a value in their mind. They're the only people who can make sense of the value proposition. So you have to give them the price, right? And then they have to consider the value that it's going to deliver to them.

And you don't want them spending all their time worrying about what the price is when they could be imagining what this beautiful smile might do for them. So, you've got to be able to help them get to that particular point.

So the million dollar salesperson. Always says, I'm going to show you the price so that you can make sense of the value proposition.

Or if those words are a little too fancy for you, you can say, I'm gonna show you the price so you can fully make sense of the offer that I'm gonna put before you.

Now, once you've got the price out, it gives you an incredible. Incredible benefit. It allows you to ask for the close earlier. We don't need to keep waffling on. We've given them the price. We've talked about the value the prospect has talked about what that value might mean to them. So you could say something very early on in the presentation.

Do you have enough information to make a decision?

And at that point you stay quiet cuz the prospect might say, yep, yep, let's do it. Right. Okay.  Visa, Amex, or MasterCard, I should say. They're ready. They're ready to go. Or you might say something like, have you seen enough to make sense of the offer?

And if they say yes, You ask them for the money. If they say, not quite. Great, let me carry on with my presentation and let me talk about, the quality of the implants and the fact that they're gonna last you for the rest of your life. And that smile will never ever waiver. Let me tell you a little bit more about the procedure.

What questions do you have? You got any concerns? Let them get their concerns out. And then again, Do you have enough information to make the decision? Well, I do. Let's go.

. So, the third point that I wanted to emphasize, remember the three traps, number one.

We don't talk about the price cuz we don't have any confidence in our price. Or secondly, we, we introduce the price late because we feel we've gotta build value before we can. We can introduce our ridiculous price. Well, we only think it's ridiculous in our mind, right? And that's another reason it's all back to the belief, but you've gotta do it earlier because then it clears the, you know, your buyer has an idea of what it's gonna be.

So don't be too scared about that.

The third thing I mentioned was that people who are offering price do it in a way where they nervously put the price on the table. And, and it comes over as being a negotiation, and the prospect thinks, okay, well I'm 14,000. , I can probably get it for 10. It, it looks like it's a negotiation.

 The best example is this, if you ever went into a store to buy a rug, there's never any prices on anything. they don't tell you. You go and talk to the, the store owner. And, they said, well, what, you know, what are you looking for? How much do you want to pay?

 You are already communicating., "I'm ready to negotiate. I'm ready to haggle." So any number that you throw out there, you're gonna start having a go at getting it lower. Whereas if you state the price with conviction. This is the price for the quality of our services. It's $14,000.

Well, that seems, that seems, that seems a lot of money.

We've talked about this on the previous podcast, the agreement principle.:

I agree. I understand Many of my clients, if not all, say that the price is very, very high. I, I understand. I get it.

Let's consider the impact of having that beautiful smile and those glowing teeth and your confidence as you walk around give presentations in business, in life, in romance, right? You and you agree with them and you disarm them, but you don't negotiate the price. You said it is $14,000 and it is gonna change your life forever.

Now, have you heard enough to be able to make a decision? So you don't negotiate on the price.

If you believe with conviction about your price, you're gonna offer it early cuz you have to, to get the sale and it doesn't become a negotiation. So those are the, those are the three things that I want you to focus on in your sales process, right?

You must absolutely,

number one. Discuss the price. You must have absolute confidence that your price is worth what it is.

Secondly, you introduce it very, very early on, even in the first or second sentence of your discussion.

And thirdly, you. Introduce price in a way that it is not a negotiation.

This way you will close more deals and you will not discount, you'll get higher value deals.

So have fun, have confidence. Go sizzle.

See you next week.

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