af.ford.a.bil.i.ty – noun — the fact of being cheap enough that people can afford to buy it or pay it budg.et – noun — an estimate of income and expenditure for a set period of time Notice, the definitions are not the same, but yet too many sales people treat them like they are. It’s not uncommon for a salesperson or even the entire sales organization to accept a customer can’t afford their product or service because a
It happens almost every summer. Families go on vacations. The client’s workforce decreases by 20%. Budgets are adjusted. Making your number for July and August is next to impossible. Though you have adjusted your personal workload during this time, the reality is that YOUR family wants to go on vacation and have that Honey-Do-List knocked out. Your kids are in sports and they expect you to make it to the games. All of these demands
If you’re someone who struggles with price, check out this info graphic. Pay close attention to the iPhone’s price in relationship to all the other phones over time. What do you see? The iPhone is by far the most expensive smartphone on the market. It gets more expensive every year in comparison to the competition. And, There are almost NO lower price options in the iPhone product line, yet Apple sells more smart phones than
Price “should” have a direct correlation to value. The right value drives the right price. The higher the perceived value, the higher the acceptable price. The lower the perceived value, the lower tolerance for price. It’s really simple. If you want to keep your prospects and customers buying, make sure the value in what your selling is commiserate with what they are paying AND that they see it. Get out of whack or they don’t
Anytime you find yourself engaged with a prospect who only wants to talk price, or the next time you’re stuck with procurement telling you your competition is cheaper and you need to lower you price, send them this: This will get their attention.