Thursday, December 12, 2019

Hypnotic Price Pressure




Price pressure is a powerful frame experienced buyers apply in order to direct their vendors‘ focus and attention. This works so well that many sales executives go into a state of trance where they desperately try to save the deal by doing whatever it takes to meet their clients’ expectations.

They refuse to lose. 

They review the scope, recalculate their cost estimates, renegotiate discounts internally… and try to reduce the price, in order to conclude the sale. This price hypnosis works so well, that many sales people I encounter in my coaching engagements really believe that price is all that really matters.

But buyers don’t buy a price.

Buyers are required to buy a solution that fits their internal clients’ needs. 

Cost-benefit optimization is usually one of the main KPIs buyers work towards. Price reduction simply happens to be the easiest and most obvious way for them to achieve their objectives.

The price is simply a means to an end.

And experienced buyers know that cheaper solutions often end up being the most expensive. 

So if you find yourself getting under price-pressure from your clients, identify the tactic and break the trance. Shift the discussion away from the superficial price negotiation and focus on what it is that they really need.

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