28d • Sales and negotiations
Why cutting your price is sometimes not enough to get a sale.
Cutting your price is not the magic bullet that some people might think. Independent of whether it is good or bad, there are times when you should indeed do some price cutting. For example, if cutting the price is the prospect's only concern, and that is the last thing that needs to happen for them to buy, and they will not buy otherwise, then cutting your price is justified. Also, what is assumed here is that after the price cut, you are still making enough money to justify continuing with the sale.
But how do you know that cutting the price is the final and only remaining issue at stake?
Obviously, you should try your best to be confident of that before you do any price cutting. Otherwise, if they end up buying, and the prospect had no issues with your price, then you just made yourself (and your company) less money.
Therefore, if you don't know if price is their only concern, you need to find out. If you have exhausted everything else, then one way you could find out if price is their last and final consideration is to say something like, "It seems like price is the only thing keeping you from buying today". This is direct, and it should only be used in order to find out where you stand before you lower your price. Even if they seem to agree with this, before you pull the trigger on lowering the price, say something like, “If I can find a way to lower the price to your satisfaction, what happens next?”. If they don’t say they would buy, then you probably have something else that needs to be addressed other than price. In order to potentially bring that into the light, you can say, “It seems like even if I was able to do something about the price, there is still something else about this that does not work for you.” Expect that serious prospects will tell you what their real concern is, which would provide you with an opportunity to directly address that.
The key takeaway is to strive to be confidently certain that price is the last required stop before a sale. If it is not, then encourage a prospect to share with you what their true concern is.
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Why cutting your price is sometimes not enough to get a sale.
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