I’ve always liked Aston Martins. The ultimate symbol of British automotive style, the car premiership footballers drive … the car synonymous with James Bond. I’d love one. The only trouble is they cost way more than I can afford.
Aston Martin pride themselves on building cars that possess power, beauty and soul. Their dealers have lavish showrooms that make you feel like you have entered a 5-star hotel and everything about them breathes class … but I just want a car; it’s just that I would like it to be an Aston Martin. Despite my best protestations they won’t sell me one for £30k. That’s a figure I plucked out of the air based on other cars I have seen that don’t really look, feel, sound or come anywhere close to an Aston … but it’s what I can afford. Why won’t they listen to me and accept my offer. After all they’d sell one more car – lord knows the economic forecasts don’t look good lately so you’d think they’d be grateful for the offer. The dealers don’t seem to see it that way though!
I am convinced that one day I’ll be successful and get one for the £30k I have though. Not a used one, nor will the £30k be a down payment – I want the entire new car for £30k and the reason I am convinced I will win out is because I am constantly faced with salespeople who tell me they have reduced their prices out of necessity. “It’s a buyers’ market”, they tell me. “You can’t afford to ask for a high price with cheaper competitors around!” they sagely profess. “Our prices are too high and customers just won’t pay it!” they claim.
Encouraged by their comments I tell them about my desire to buy an Aston Martin for £30k. Many look at me as if I have gone mad. “Don’t be so daft!” they scoff. “It’s an Aston Martin … derr brain!!!!!” they chuckle and look at me as if I have a screw loose. “But why not?” I ask them hoping that my dream will one day be a reality.
Many will list some of the features, advantages and benefits that make the Aston unique, or at least one a few elite motor car makers and models that can command high prices because they offer value for money, even at their elevated prices. When I ask them if they think the people that run Aston Martin should revise their pricing strategy and sell the cars for less, making less profit, even selling one to me at only £30k they usually say no. If that was to happen they tell me that Aston Martin would have no money to invest in new models, not be able to offer support to owners and be able to market the brand or employ the people their company does. And as they do so … for many of them a look comes over their faces which demonstrates they have understood that is exactly what they are doing to their company when they too-quickly reduce their selling prices or allow the prospect / customer to dictate their pricing and supply policy.
To see if this is happening to your team with your products and services please answer YES or NO to the following questions:
- Are you regularly asked to reduce your selling price or make concessions to close a sale?
- Do your sales people focus more on you reducing your sales price than studying your product / service to see where the value lies?
- Do you often lose sales due to your selling price?
- Do your salespeople struggle to list more than 5 reasons why your product / service is worth more than your competitors’?
- Do your sales people believe price is the main reason why people choose to buy something?
- Do your sales people apologise for the price or warn prospects to ‘sit down and take a deep breath’ before they give the price?
- Do you issue quotes (written or spoken) that offer specification, quantity, price and lead time as the major criteria given to the customer?
- Is your turnover increasing and your profit lessening at the same time?
- Are you having to make more sales to make similar turnover?
- Are your customers regularly dictating to you how you have to do business with them regarding price, delivery and other terms and conditions rather than it being an equal negotiation?
If you can answer YES to two or more of the above questions there is a very high probability that you really aren’t justifying your higher price … and that your customers don’t understand the value they get when buying from you. In other words if you answer YES to two or more questions then your sales results and earnings can really benefit from understanding and applying a structured sales approach that demonstrates excellent value for money. Your profits and sales will both increase as a result of applying a simple, easy to follow structure that can be applied to your products and services, no matter what industry you are in.
It’s either that … or get James Bond to endorse you!
Learn how the most successful salespeople sell their higher priced products so you can achieve better results now! Click here for details on my ebook How to Sell Successfully at Your Higher Price module.