On a recent travel to Portland, I struck up a conversation with a nice gentleman who adamantly told me that “price doesn’t matter when making the sale.”
In fact, he said, that often the higher the price, the better and easier the sale.
I asked why, and he said, because we live in a consumer society. People love to spend money. They love to come home with lots of stuff. And they love to have the best because the best means authority, and superior solutions.
He was a master salesman, so I consider myself fortunate that he crossed my path. People cross our paths for a reason! And I’m always looking out for new information and new ways of looking at things.
Back to the moral of the story…
He said that when he offers a higher price for a better product or solution, not only do people generally go for it, but they were already thinking the same thing! And they tell him so. And then they buy.
His reasoning is this… if you’re already going into debt for this solution, or you’re already spending a bunch of money on this, why not spend more to get the best of the possible best? Most clients agree.
When someone’s objection is “price,” it’s not the price tag itself that they object to. It’s the price for that solution that they object to. He gave me an example of how someone objected to the price that he was quoting them and he made the mistake of believing him when he said it. He later found out that that same person turned to one of his competitors and bought a slightly superior solution for $75,000 more! So they guy actually wanted to pay more for a better solution!
Often times, crazy enough, you’ll have fewer sales because of a lower price point.
People know that paying more often means higher value, whether it’s perceived value (in the sense of a women’s purse or a huge watch) or actual value (in the sense of superior technology and bells and whistles).
For instance, people often look for a bargain, but they get what they pay for.
Take the home cleaning industry, as an example. I remember a friend telling me about searching for the cheapest carpet cleaning he could find. He found a company, but after they cleaned his carpets, they remained wet and began to develop mildew. So he had to find a better, slightly more costly carpet care service who came in, consulted, and did the job right. It was immaculate.
Same goes for things like suits and clothing… you can find cheap clothing, but how long is it going to last you? How long will that cheap watch last?
You get the idea.
So how does your future look? Are you going to pay more for better value?
If you’re in business are you going to increase your value and charge more? And are you going to be more willing to quote higher prices (and not just to get more money, but to provide actual value!) knowing that people most often take it?