“When your prospects are telling you that you lost on price, it really means that you failed somewhere in your sales process.” – Andy Racic in today’s Tip 189
Do you lose on price too?
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Scott Ingram: You’re listening to the Daily Sales Tips podcast and I’m your host, Scott Ingram. Today’s tip comes from a long time fan of the show and friend of mine, Andy Racic, who is the head of sales at Tango Health here in Austin. Andy along with David Weiss is getting ready to release a book together called Your Sales Career Guide. Just keep listening to this show and I’m sure we’ll have a tip from one or both of them the day that book is available. In the meantime, here’s Andy with today’s tip:
Andy Racic: You’re not losing on price. Or at least you’re not losing on price as frequently as your prospects would have you believe.
If you’re selling something that’s close enough to your competitor’s solution and you’re coming in at double their price, sure, in those cases you’re losing on price.
Realistically though, unless you’re in an early-stage startup, your company will have pricing guidelines that are in line with the rest of the market, so when your prospects are telling you that you lost on price, it really means that you failed somewhere in your sales process.
The next time you’re about to deliver a proposal, make sure you’ve done your due diligence to really understand what’s most important to your prospect. Ask them to stack rank the business outcomes they’re trying to achieve with your solution. Directly confirm with them that they understand and value of each piece of your proposed solution and how it solves for their desired outcomes. Ask them “if the price were equal between our solution and the others you’re currently evaluating, who would you go with?” and then ask them why. Understand who else they’re speaking with and how your solution compares to theirs. If you’re not doing this work, you’re not doing all of the jobs. Instead what you’re actually doing is hoping that your prospect is doing this work for you. And you’re really hoping that your competitors aren’t also doing this.
Scott Ingram: To find links to connect with Andy just click over to DailySales.Tips/189
Then be sure to come back tomorrow for another great sales tip. Thanks for listening!