One of the single biggest challenges our clients share with us are those associated with selling against lower-priced competition. Your team may tell you, "everybody buys on price," and "I had to cut our price to get the deal."
Well... the truth is you can't afford to have them deal with price-buyers AT ALL!
Pure Price-Buyers Take All Your Sales Time
If you’re an experienced salesperson reflect back on your selling experience and ask yourself this question: Where have I spent most of my sales time? Inevitably, if you haven’t been able to eliminate them, it has been with price-buyers.
The price-buyer has no qualms whatsoever about wasting that time.
Invariably, their attitude is:
- “I’ve got to get a good deal no matter how long it takes.”
- To beat and pound on you, asking if you, “can’t squeeze a little extra out of here?"
- “Cut me a deal this time and I'll pay regular price next time”
- Tell you that they “need some time to think it over” and will ask you to “come back in a couple of weeks,” at which time they’ll beat and pound on you again.
- The pure price-buyer has one mentality: We can waste your time or my money. Guess which one they prefer to waste?
They Do All The Complaining.
Pure price-buyers do this for two reasons:
1. They believe that complaining builds character in salespeople.
They learned long ago that complaining will almost always get them some sort of price concession or some sort of "special deal.” The basis of that logic is that most people do not believe that someone complains unless there really is something to complain about. Therefore, most people who hear complaints from their customers believe that there must be something seriously wrong or they wouldn’t complain in the first place.
Because of this, the salesperson is very inclined to say to their boss, “This customer’s really unhappy. We better do something about it or we’re going to lose this account. Maybe we better cut them some kind of a deal to make them happy.”
People who study negotiation skills learn quickly that complaining DOES get concessions from salespeople. Therefore, those who teach negotiation seminars to purchasing professionals, for example, teach them to complain. It almost always gets some kind of concession from the selling organization in the form of a discount, rebate, throw-in or some other “extra.”
2. They want full measure.
These prospects or customers want “100% satisfaction.” But you really need to recognize one thing. their notion of “100% satisfaction” will almost always exceed your idea of 100% satisfaction. In fact, one might interpret any pure price-buyer’s notion of 100% satisfaction as more like “125% satisfaction.”
They "Forget" To Pay You.
One of the most interesting things about pure price-buyers is that once they’ve told you that they are “paying good money for this stuff” and “you had better make it right” – and you attempt to “make it right” – they then forget to pay for what they bought.
A parallel phenomenon is that most price-buyers are also slower payers. There are 3 reasons for this.
- Anybody to whom money is so important tends not to settle accounts quickly.
- Anybody who is willing to beat the daylights out of you for an extra one quarter of one percent is more than willing to take that extra discount in the form of the time-value of your money by slow pay of your account.
- By the way, they also fail to pay other suppliers. So, at least, you’re not alone.
We’ll even bet we can give you a list of your price-buyers, with 80% accuracy, just by looking at your receivables. Why is that, you ask? Because price-buyers are notoriously slow payers and they can almost always be identified through their lousy, slow or delinquent payment records.