Wind of Change

Escaping the Price Trap: Multiple strategies you can use to reframe the issue

How many times have you been told that it’s imperative for you to “get inside your customer’s head?” Probably a gazillion, right?

Today we’re going to turn that into a reality. In fact, I’m going to give you the opportunity of a lifetime – the chance to have a ringside seat inside a real prospect’s mindset – one in which price is an issue.

You’ll also be able to see, in real time, how a seller might choose to deal with this situation. The only limitation to this learning opportunity is that the buyer and seller can only communicate via email.

Here’s some background on the situation.

Less than 1 minute ago, you (and I mean you personally, not some generic “you”) read a brief overview of the upcoming Sales Stimulus Package – the big event I’m pulling together to help sellers get more prospects in their pipeline.

For the purposes of this exercise, you (remember, I’m pointing my finger directly at you right now) will be the prospect and I’ll be the seller.

So let me ask you this: What thoughts went through your mind when you read about the Sales Stimulus Package and preview calls?

Did you think…

• Sign me up now!  It’s just what I need.
• Cool. I’m going to see if I can get my boss to pay for it.
• It looks good, but your prices are pretty high.
• Sounds great, but I can’t make every session.
• Will I really learn some good stuff that will make a difference?
• Maybe I’ll just attend the freebies.
• Times are tough. We’d love to have our reps attend, but that gets costly.

These are just a few of the reactions I’ve heard since I launched the Sales Stimulus Package early last week. My guess is that you reacted similarly to at least one of these.

The key question that you – and most others – are evaluating right now is, “Is it worth it?”  As the seller, it’s imperative for me to address that issue, because it influences whether you sign up or not.

Like many of you, my natural tendency is to tout how incredible these speakers are and promise that you’ll learn all these wonderful things that will totally transform your business and make you the most successful seller in the whole wide world.

That would be really stupid to do. The more I’d try to impress you, the less likely you would be to believe me. I’ve chosen to avoid the hype.

So how can a seller (me) increase your perception of the value of the Sales Stimulus Package?

There are multiple ways to do this and they all involve REFRAMING the price. In essence, instead of having you focus on $299 (Early Bird/person), here are some strategies I could use.

As you read them, think about which have the biggest impact on you and your decision to sign up or not.

Lost Opportunities | Future Gains

In today’s economy, virtually every seller I know is experiencing challenges right now. Decision makers are cautious, not wanting to spend money unnecessarily. Sales are being delayed and more people are involved in the buying process. Slow, slow, slow.

Let me ask you a few questions:

• How has the economic situation impacted your business so far?
• How effective are your prospecting strategies?
• Do you have enough prospects in your pipeline to meet your goals?
• What are you doing to adjust to the changing economic climate?
• How’s it working for you?

Yes, the Sales Stimulus Package costs some money. It’s not cheap because it’s high quality, high impact. But it is affordable.

And, when you think about how much business you’ve lost in the past six months, it’s a small price to pay for learning skills and strategies that can help you succeed despite the economy.

Usually I wouldn’t lead with this type of approach because I don’t like “fear-mongering.”

However, I am a pragmatist – and this is what I’m seeing right now. I have to make changes to get business. Everyone does. But not everyone knows what to do to make it work. That’s why I’ve chosen pragmatism as a major emphasis in what I’ve already written.

Average Customer Value

What’s your average customer worth to you? My guess is that it’s a whole lot more than what you’d pay for the Stimulus Package. So think about this:

• If Patrick O’Malley could show you a new way to leverage LinkedIn to get business, your investment would more than pay for itself.

• If Kendra Lee’s advice on leveraging email got you a meeting with an executive you’ve been dying to land as an account … what would that be worth to you?  Perhaps now the investment in the program seems miniscule.

• If Sam Richter’s strategies on gathering sales intelligence were just what you needed to snatch the business from competitors, would the program be worth it then?

• Finally, if you extended the value of the initial order to Lifetime Customer Value, what kind of money are we talking then?

Personally, I think this is a really good reframing because it talks about the true worth of the program to you personally. It also puts your INVESTMENT in a more proper perspective.

Please note the switch away from price, because we truly are talking about an investment in your success. Since most people don’t automatically make this mental leap themselves, it’s important to bring it to their attention.

Cost of Hiring Experts Individually

Each of the presenters that I’ve lined up to speak at the Sales Stimulus Package is a highly paid professional. Bringing even one in to speak to your organization would cost thousands and thousands of dollars.

But all of them? You’re looking at spending about $75,000. Why so much? Because they know how to help you sell more. They’re experts … pros who know how to help you put more prospects into your pipeline. Most companies couldn’t spend this much – even when they desperately need it.

As a seller, one of my responsibilities is to educate my prospects on the true value of what I’m my offering – otherwise you don’t know. You don’t make decisions about this often, if at all.

That’s what the jeweler did when my husband shopped for engagements rings. Once he knew all about the 4 Cs (carat, cut, clarity, color) that influence a diamond’s worth, he realized what he was investing in and willingly paid more.

Since most of you would never spend that much money, I only bring this up to give you a comparison of fair market value versus what you’d need to spend. Since it’s so much less, I’m hoping that you’ll think, “Wow. What a great deal!”

Low Cost Per Session

By packaging these programs together, we’re able to offer you special pricing that you couldn’t get if you attended each of these teleseminars individually. In the past, we charged $79 per program. But if you get the Stimulus Package at the Early Bird rates, each session is only $25. That’s a whopping 66% discount.

What I’d like to point out here is that this is a secondary strategy. This only works if you, as a potential buyer, think that the PACKAGE itself brings value and you have a strong desire to learn from multiple presenters. If you think it’s a waste of time and money, saving 66% is irrelevant.

Understanding Value

Once you start thinking about how to help people realize the true value of your offering, it’s amazing how many ideas can pop up. For example, I could also stress:

• The value of training reinforcement. Since Sale Stimulus attendees get MP3s of each session, they can listen to the experts over and over again – thus ensuring that the training “sticks.”

• The minimal risk involved. In fact, we’ve created two free preview sessions where you can listen in to the speakers prior to signing up – just to make sure it’s of value to you.

• That you don’t have pay to go to a conference or spend money on hotels, airfare and more. It’s the most cost-effective training you can get.

But enough of that. I could go on and on. Let’s get back to what this is all about.

Every seller today is getting caught in the price trap. It’s one of the first things your prospects want to know. How much is it? How much is it? How much is it?  It’s enough to drive you crazy.

PRICE IS RELATIVE. It’s a bad place to start.

As a seller, your job is to help your customer understand the value of your offering. You need to get them off the pricing and into a conversation about what really matters.

That’s why I put you into the role of the prospect. Which of the strategies I described worked best with you? Perhaps you have some other suggestions. If so, I’d love to hear them.

Hopefully, my transparency in talking about my own options has opened your eyes to new ways you can approach the dreaded price talk.

I didn’t avoid it. In fact, I tried to deal with it very openly. But you can’t do that if you’re not prepared. These strategies didn’t just pop into my mind when I was under duress. They’re something I think about ahead of time.

We all need to be prepared to talk with our prospects about price. We need to be able to reframe it – hopefully before they say, “How much?” or “Too much.”

If we sell, it’s our responsibility to address the price trap proactively, so we don’t get caught in it.

_____

So what do you think? Which approaches are more effective? Which don’t you like and why? What other strategies would you recommend?  I’m looking forward to hearing from you!

Thanks Jill for tackling a point that I have been struggling to make it clear for my team !!!