The Lowest Price Gets the Sale?

This is myth number one in my recent book and you as a business owner or manager should not believe it at all. As I have said many times, price only becomes the deciding point when everything else is equal. Of course if you have 2 red balls the same size, same quality, same bounce and no added service; most of us will buy the cheapest price. It's your job to make sure sure they are not the same and yours has added service, guarantee, delivery, exchange policy, customer assistance, etc, etc.

People will pay a price they associate with the value they are receiving, not always the product. In business to business sales, buyers usually say price is the deciding factor and it seldom is the real reason. If you lost an order or a sale you need to dig deep to find the actual reason, don't just believe it's price (it usually is not). Look at cars for an example: any car will get you where you want to go but some people pay double, triple or even more than the lowest price for a car they really want to own. The added value is not worth double or more but buyers pay it because they believed the marketing that told them it was.

Your job is make your prospects feel that your products are worth more by adding value and service to make them perceive a higher price is warranted. Let the big box retailers and sellers sell by price while you make a higher profit by adding service, standing behind it and promoting it. Many large companies started this way but went off track as they grew to massive size. You can take back some of that business by starting right now and making price Not An Issue.

Barry is a Speaker and business coach who has started and operated ov 20 different businesses. www.idealetter.com