The paperclips didn't need a sales pitch. Neither do your clients.

SELLutions

How to Avoid the Lowball Offer

by GSchulz 13. April 2011 20:08

As a consultant, seller or even CEO… how many times in your career have your heard prospects fight you on rate or price? “I like your proposal, your price is too high.” “I can get other companies at a lower cost , or “What can you do about your rates?” or “I’ll do the deal but you’ve got to knock 20% off… take it or leave it.”

Here’s a true story told from a banking rep names Jennifer. Jennifer finished a presentation to a prospect after she had qualified the prospect on need, budget and had all the decision-makers in the room. She had gotten each of them to agree to make a decision at the end of the presentation. her presentation was textbook. She had each person involved; she addressed each of their requirements. She presentation points covered each of the prospect’s issues in their priority… and he only addressed issues, which were relevant to the sale.

At the end, one of the prospects made a simple statement. “Jennifer, this is great, and we love the job you did for us. We’d love to begin, except we want you to give us a discount. What can you do for us about your price?”

Jennifer remembered the following: Never defend or justify. In fact, Jennifer did the exact opposite thing most sales people would have done.

She said, “I could raise it.”

The Prospect laughed and said, “Jennifer, I know you’ve got more leeway on your interest rate”.

Jennifer calmly asked, “I suppose that it’s over?”

The prospect responded, “What do you mean?”

Jennifer said, “Simple. My price is too high and it’s over.”

She held out her hand to thank him for his time when…

“Wait Jennifer. Your rates are high, but your ideas are better than any we’ve seen.”

“I appreciate that,” responded Jennifer, “but you aren’t going to buy it, and I wanted to thank you for the opportunity.”

Then the prospect replied, "Jennifer, telling people they aren’t going to buy is no way to make it in sales.” “Thanks for the advice,” she responded.

“Don’t be too hasty to leave. Actually Jennifer, we are going to do this. But I have to tell you Jennifer, “I’ll remember that.”

The result: When used at the right time, telling a prospect that “It’s over” can make sales happen, because it forces prospects to make a decision. Why? Remember when you were a child your parents told you that you couldn’t have something you really wanted? You actually wanted it even more. Not that your prospects are children and you’re parental, but the concept applies.

Use this tactic when the prospect gives you some objection when it’s time to close.  But two conditions must exist before you use this tactic: First, the prospect must have stated how your solution will solve their concerns. Second, the prospect has told you they have a budget big enough to buy your solution. When you go forward, act the part with conviction. When you make the statement, you must convey the to the prospect you believe the sale is NEVER going to happen.

And when the prospect tells you that it’s not really over, offer your help by stating, “Oh. I got the wrong impression. What would you like me to do now?”

Then wait, forever if necessary, for a response.

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