No one wants to feel like they’ve been taken advantage of in a sales transaction. No one likes being lowballed. Ever. In most markets these days, prices are rising. And the need for the right solution is still increasing. This means that many buyers are still tossing that “low-ball” just to get what they need. And crucially, at the price they want.
Many salespeople would argue that agreeing to a lowballed offer is a way to attract the attention of more potential customers. However, it often does not work so well for the business in the long run. This is still true even if your competitors start to offer rock-bottom pricing. And are also slowly stealing your clients away.
VALUE PROPOSITION + LOWBALLED
Keep in mind that in order to be a successful business owner, you must not let your competition dictate your value. That is, they must not commoditise your offering. If you have a good value proposition, then you have built a business that offers the best customer experience. That is, for the best value.
It is important to know that in today’s business landscape, many entrepreneurs are struggling and can only compete on price. This is since they are not really creating value for their customers. You need to understand your business model is you want to create a strong brand. And also, if you want to continue to evolve. You need to revisit your strategy over and over again to keep your position in the market. And more crucially, keep your customers.
Here are some tips to stand out from your competition and avoid getting lowballed in the market:
Assess the Value of the Low-Balling Customer
First, determine if the customer is offering a low-ball price that can be profitable in long-term. Consider taking the offer at a lower (less profitable) price only if you can build them into a regular customer at a higher profit margin when they learn your value.
However, if this is only a one-time deal, you need to turn down this low-ball price. This is because you will be wasting your time servicing this customer at little or no profit when you could be marketing to a new customer at the higher price where a profit can be made that will actually build your business.
Get Even With a Good Counter Offer
A professional sales rep should always give a counter offer when being offered with low-ball price. Regardless how skilled and trained you are in sales; you will never know if the buyer is bluffing. If they are bluffing, they are not serious, and they will go away as soon as you make a counteroffer. But if the customer isn’t bluffing, then there is an excellent chance after some negotiation that they will accept a price that works both for you and them.
Let Them Know Your Value Proposition
Now more than ever, customers are buying from companies not just because it offers a product with a fair price, but also because they provide the best solution that can solve their pain. Brands like Apple, for instance, can charge in premium because of the perceived value of their products.
One way to justify your price offering is to ask the prospect, “What would the results need to be for you to pay my original price in the proposal?” In this case, you are building value instead of cutting services. In addition, you know what the prospect values and are willing to pay more for.
Overall, if a prospect is offering a low-ball price, then they either don’t have a problem that your solution will solve, or they don’t have the resources to solve it. Regardless, none of these customers are worthy of your time and resources. When you often get low-ball offers, it is a sign that you are talking to the wrong prospect, or your solution is not as valuable as you think it is.
If you need help in building a business based on a good value proposition, then contact us today at 1300-833-574 or email us at firstname.lastname@example.org