How to Sell the Higher-Priced Option
By Art Sobczak on Jun 30, 2009 in Price and Value, Sales Recommendations (presentations), Unique Value Proposition
I admit, I’m an eavesdropper.
On sales transactions mostly. When out shopping or browsing, I will position myself in the vicinity of a conversation between a salesperson and customer to listen to the transaction.
I know. I should really get a life. But it provides great sales lessons. Good and bad.
For example, at an electronics store, I observed a customer asking the salesperson about a computer:
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"What’s the difference between the $400 model and the $675 version?"
The sales rep said, "Well, it has a few more features, but the $400 model does a pretty good job."
The customer agreed to get the $400 model, and the rep went to retrieve one from the back.
While waiting, I overheard the customer say to his wife, "I probably would have gone for the $675 version, but I guess we don’t need it."
And this happens all of the time.
When you hear questions about the differences between lower and higher-priced versions of what you sell, what they’re really saying is:
"I could buy the higher-end product/service, I’m not yet convinced of the value. So help me understand why I should get it."
Understand your opportunity here!
First, the mistakes to avoid:
MISTAKE: GAGGING OUT A DATA-DUMP EXPLANATION
Just like at any point in the sales process, if you present data without knowing what, specifically, they would or could be interested in, it could cause their eyes to glaze over. Worse, you might provide fodder for an objection.
MISTAKE: DOWNPLAYING THE HIGHER-PRICED OPTION
For fear of losing any type of sale, some reps play up the lower-priced option while not knowing anything about the prospect’s situation. They make an assumption that the person won’t buy higher. This assumption takes money out of your pocket.
Again, keep in mind that when they ask about the higher-priced item they could be saying, "I can be sold on the higher-priced version … I just need to justify it."
Your first response should not be presenting. Instead, question. Focus questions on uncovering reasons why the top-of-the-line version delivers more value, to determine if that’s what they need or want.
For example, "Well, the Deluxe Option has a few nice extras that might be a good fit for you. Let’s find out. Tell me, do you ever run into situations where you have to manually extract the additional data you need from your database? I see. Well this version does that for you. And, how about situations where …"
Or, "I’ll be happy to explain. So I can make my comments most relevant, please tell me, how do you plan on using the system?"
There are many more sales reps who sell on low price than there are buyers who buy strictly because of price. Find out what they need, and everyone wins.
