Heard all too often is, “This guy is such a jerk! I’ve bent over backwards to get him the best price and he still hasn’t allowed me to close the deal.”
Why didn’t offering the lowest price close the deal?
The X Factor Selling System uses a system, which is outlined in the book, and taught in X Factor Seminars, of four P’s: People, Product, Process and Price.
Each P category describes why a person buys- covering the vast spectrum that affects the decision making process of a buyer.
Yet, sales people are consistently focused on offering the lowest price-feeling that is the sure-fire way to close a sale. However-what if your customer purchase depends on how easy it is to use/obtain (process), or the customer can’t get passed the brand (product) or maybe they are all about the personality of the person selling to them (people).
With X Factor Selling, you will know which P category your target falls under and they may be Product or Process centric, therefore being offered a lower price will not motivate them to purchase.
Using the four P’s and choosing a pricing strategy accordingly is how we as salespeople can get a target to buy. Knowing the client’s true motivating factor will also allow you to be able to not only negotiate-but to gain an alignment of goals. You know why they buy-therefore you have the ability to steer the sale while speaking to what you know matters to them.
Pricing Your Product
• With X Factor Selling you need to decide if price is important not assume price is important during the negotiation process.
• You will identify what is important to the customer and then identify your pricing strategy.
Let’s say that your target is people centric, and they have a great relationship with their current sales rep. Well here you can use them not being price centric in a few different ways.
A. You can strive to also have a great relationship with them as well-realizing that they are more focused on who the sales rep is than the price.
B. You can show them you can have the same relationship with them as well-and be offering a better price.
In other words, there are a lot of other factors involved than simply throwing out the lowest number. Don’t get me wrong, price is usually a factor-but it is not the only factor 100 percent of the time.
In the cases that simply price matters, the target is price centric:
Price: Someone who falls under this category is simply looking to get the lowest price. For example someone skimming the shampoo isle and choosing the cheapest shampoo, despite name brand or who is selling the product. Another example is someone looking to get the cheapest gas prices; the attendant does not need to be nice to you, or sell the best quality gas, they simply need to have the lowest price per gallon for you to purchase their gasoline.
Possible X Factors (motivating factors):
• Feels getting the lowest cost means good business.
• Feels it will please a superior.
• Lacks a substantial financial plan in place to be able to pay more in order to make more later on (short sighted).
To learn more about this process read The X Factor Selling System: The Sales Expert’s Guide to Selling
Also attend the upcoming X Factor Selling Seminar! April 25-26th click here for more details!
Visit our website, thesalesexpertusa.com