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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