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I walk into a prospect’s office with a new salesperson named Zack (not his real name).

We have the obligatory first-meeting conversation with the prospect.

Out of the blue the prospect holds up a part and says, “How much do you guys get for this?” Will Zack remember the sales advice I’ve given him about these situations? Zack immediately dives for his catalog and finds the price. “$375.00 each.” The prospect looks unimpressed and says, “Too high. I can get those all day long for much less. Thanks for coming by.” [Sound of door closing behind us]

When we get out to Zack’s car I ask him what he thought of the call. Zack is a smart guy and he knew where he blew it. We reviewed the following basic sales tips when a price question is unexpectedly thrown in our face.

Fundamental sales skills tell us to never quote a price when you’re not prepared. Never quote under duress. Hold off quoting until you get more information and can educate the customer on your added value.

When you get blind sided with a price request and you throw out a price, you’ve eliminated the chance to sell your added value. Remember, you justify your pricing by telling the customer all the additional things you and your company can do for them besides shipping them a product. An ISA study found that 74% of buyers would buy at a higher cost if they better understood the added value a vendor brings.

Always be sure to ask how many the customer needs and when they need them as part of your information gathering. If you have them in stock and they need them quickly you gain some pricing control. If they say they don’t need any at this time, then you know they’re just price checking and you should ignore the request (see Customer Price Sensitivity).

What are the two most important things to remember when you’re hit unexpectedly with a price request and forget how to sell? Information and time are critical. Find out some basics about their needs, educate them on your added value and tell them you’ll get back to them with a price.

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Tags: pricing

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