Why Price Doesn't Matter
Post by Bjørn Erik Vinje
How important is the price for the customer?
A young salesman was selling gift-wrapping paper to stores so that they could gift-wrap presents for their customers. He was visiting one of his regular customers who was looking at which design to choose for Christmas. This was a high-end kitchen equipment store. The salesman had many designs of Christmas paper with a wide price range.
The store owner, Svein, was looking through all the samples while the salesman was observing him. The salesman suddenly realised that Svein was looking at the higher-priced range of the catalogue. He knew that the customer was going to buy a high volume of gift-wrapping rolls as well as a lot of subsidiary products. He was pleased, but at the same time, he was a little worried. What if the customer would find the paper too expensive and would wait to place the order? Or even worse, see what his competitor had to offer!
All of a sudden the customer stopped at one of the designs, studied it for a minute and looked up at the salesman, pointing at the sample he said:
“I really like this! This is the one I choose!”
The salesman knew that this was one of the most expensive designs and he heard the words slipping out of this mouth
“Are you are aware that this is an expensive design, Svein?”
He was silent for a few seconds looking at the young salesman, then said
“Is it you or I that decide if this is expensive or not?”
This moment was one of the most important lessons for me as a young salesman!
Very often we find conversations about price uncomfortable, and we are afraid of rejection because of the price.
What is important to make sure you are successful with this part of the sales process?
Here, it is important that we start with ourselves and our own visions. We must believe in the value ourselves! It is hard, if not impossible, to convince the customer that the price is right if we do not believe so ourselves. Therefore, be proud of the price of the product and the service that you are offering!
The customer weighs up the price against their perception of the value of what they are buying. That is why you need to focus on the customer's perception. The more you fulfil their perception of the value, the less important the price becomes for them!
The price negotiation is not at the end of the sales process, rather, you as a salesperson start the negotiation as soon as you meet. At the beginning of the sales process you start to fill your customers subconscious with positive impulses. Doing this shows you understand that the customer's perception of the value is what is beneficial to them.
So what was the most important benefit of the gift-wrapping paper for Svein?
Everyone who saw a present under the Christmas tree wrapped in that paper, knew it was a high-quality product. Even before they opened it! That made both the giver proud and the receiver happy.
So when you next enter the sales process remember this:
Written by Bjørn Erik Vinje
Bjørn Erik has been a management and sales trainer since 2006, working mainly in the Scandinavian market, but has delivered training in 16 different countries. He is passionate about change and inspiring others. Seeing how our training helps people to achieve their results, and improve their personal life, is his motivation for doing what he does. He loves to share a good story and a laugh. If you want Bjørn Erik to talk for hours, ask him about underwater rugby!