‘4 Sales Techniques to Avoid Race-to-Bottom Pricing’ – HubSpot
Michael Pici says, “No one truly wins a bidding war. Even if you’re the salesperson walking away with the business, you’ve shrunk your profit margin and lowered your product’s perceived value. You’ve also shown you’re willing to make extreme compromises — which may cause your buyer’s future referrals to seek similar bargains.
But despite the danger of “race-to-the-bottom” tactics, many reps still find themselves embroiled in competitive deals they feel they can only win by cutting price. Successful salespeople avoid this trap with the four techniques outlined below.
1) Don’t Talk About Price Right Away
HubSpot Research found nearly six in 10 prospects want to discuss pricing on the very first call. But introducing cost into the conversation before establishing value can commoditize your product. Rather than thinking, The first option does A, B, and C, while the second does A, B, and C — and D, E, and F as well, your prospect thinks, The first option costs X, while the second costs 2X.
This mindset hurts you and the buyer. He’s thinking about sticker price instead of ROI”.
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