TIPs #1 - Art of Selling - Price

Written on June 13, 2007

I found this fascinating book lying on my office table on the first day of work after my trip to USA. I just opened one page and was completely fixed to the “secrets” this author had to share with me –
in The Art of Selling by D. Forbes Lay. I was so mesmerized by what I don’t know that I now know… and to be aware of what I don’t know – I know!!!


TIPs #1 – PRICE

Price means different things to different people, at different times, and under different circumstances.

To the Salesperson, price is a stumbling block that prevents sales because it is always too high.

Yet, top Salespeople choose to sell high priced products for the higher commission. Price is more of a problem in the Salesperson’s mind than in the Prospect’s mind.


To the Company, price is based on:
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-> Their product’s production and sales costs
-> The price their competitors will “let” them charge
-> Substitute products (vacation vs. a new car)
-> Desire for certain large accounts
-> What their Salespeople suggest
-> A good deal of “gut” feel


To the Prospect, the price is a sacrifice they must make in :
--------------------------------------------------------------------------------------------
-> Dollars, both short and long term (change, service and life)
-> Physical effort of acquiring and implementing the product
-> Hassle of change in procedures and personnel
-> Peer pressure, if not a popular decision


To all, there are emotional and logical aspects to price. If the emotional aspect is strong enough it will transcend all other considerations. A Psychologist will agree that if someone wants something badly enough, then they indeed do “need” it. Conversely, if someone really needs it, but doesn’t want or feel comfortable with it, it will be an unhappy purchase.

(and here’s some interesting revelations…)

To the Prospect the price is:
********************************

ACCEPTABLE:
* If they want it emotionally
* If the product is scarce
* If the product is being hoarded
* If it is the last one (greed)
* If it is a great bargain (everyone is a buyer at some price)
* If it reinforces their self-image
* If they do not know what a good deal is (a consulting fee?)
* If the product is unique
* If the product is a current fad
* If the product is complex
* If the product is personalized
* If pride is the motivator (luxury items)
* If the product will make them look better to others
* If the Salesperson assures them that it is acceptable


UNACCEPTABLE:
* If it has a very low price (little value, little respect)
* If the low price cannot be justified (being dumped?)
* If below their station in life (have to apologize for it)
* If they don’t want or need it
* If they don’t see the benefits in it for them
* If they feel they can get it cheaper elsewhere (being “taken”)
* If it is not a good deal in their mind
* Price must not be considered an objection.
* Price resistance is a signal that the Want is not great enough for them to exchange their dollars for the limited benefits.


Top 7 “Selected” Secrets:
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1) Rarely is price the only deciding consideration
2) Price is neither high nor low; it is a relative value
3) Every price is too high until they see the benefits
4) Features justify purchase; benefits justify price
5) People buy from people they like, often regardless of price
6) You only cry once when you buy quality
7) Price only ranks 6th in importance in deciding


Source: The Art of Selling by D. Forbes Lay – Chapter 15 (PRICE)


I got so much value out of this book that I want to share some of these tips with you too. I hope you got value from this short sharing and I’ll be sharing more with you as I go along… it was either reading the whole book then share it or share the bits and pieces I read :).

Believe like it or not, everybody is selling all the time, whether you’re presenting to customers, to your boss, interviewing for a job, to your potential partner, their parents… yes, even your kids!

Being on Money & You Team, starting from a person who practically feared sales and avoiding it like a plague – to my breakthrough experience when I did the Excellerated Sales Team (EST) Training in 2005…

I can now say “I LOOOOVVVVVVVEEEEE SALES” with essence and complete congruence.

I was thrilled to hear from some of the graduates who had gone for the last EST training in May (when I was in USA – so I missed it) when I gave them a call -- and they shared with such great enthusiasm even after 3 weeks of doing the program, how differently they feel about sales, and how they are being when they do sales. WOW!

If you want to experience it yourself, join us at the next EST program scheduled on 28-29 July 2007 (Sat-Sun), 10 am – 6 pm, Money & You Training Centre, Kuala Lumpur.

Just reply to jacylyn@globesl.com or jacy.ignitepassion@gmail.com
with your Name, Contact No. and month/year of graduation.

NOTE: EST is only open to Money & You Graduates. Minimum requirement is to first complete the 3 1/2-day Money & You Program.

p.s. Graduates who have gone through this program, do come back for more. Each round of EST we are going to add something new!