Do your customers often tell you they can get the same thing for less elsewhere?

Not handling price objections is like throwing money down the toilet Of course they do. This is sometimes referred to as a price objection. But, they are NOT necessarily asking you to lower your price.

They may be asking you to increase your value. If you find yourself in this situation, make sure you can educate your customer better about the value of your product/service. Otherwise, they may end up going somewhere else. Listen and you may learn something. You usually don’t have to lower your price. You just need to re-state the value of your solution in a more effective manner to enlighten your customer. (This assumes that you do have a good value proposition.)

Don’t allow them to Pay Less and Get Less! Their investment will go down toilet!

Then, they will have to find another supplier/vendor that can actually do the job right for them. Chances are, it won’t be you, because they’ll end up being mad at you. You were not prepared well-enough to create a win-win sales transaction the first time. Your poor-preparation will reflect upon the reputation of you and the company you represent.

Learn how to present and demonstrate your value proposition in the eyes of your prospective customer. Catalog in your memory, numerous stories you can tell about un-happy customers that purchased a similar solution that did not full-fill their needs. Be ready to point-out the differences.

Understand how to engage the customer properly. Learn the tools of your trade so that you can “help others get what they want and need”. You are a “professional” aren’t you? Then start preparing and performing like one.

Denny Andrews, a friend of mine tells this story about an experience he had with the “low priced” car rental company.

Tampa Florida To Seattle Wed. Nov. 4th, 2009
Being in the business consulting field I am always looking for especially great customer experiences or in some cases if that doesn’t exist I look for what not to do.

I have one of the best what not to do examples I have ever seen. Let me start by saying Payless does not necessarily mean you are going to pay less. I had some presenting work to do in Florida and the company I’m working with made all my reservations so I was just going with the flow.

I arrived in the Tampa airport at about 10:00 at night after leaving for the airport in Seattle at 8:00 that morning. Excited about my trip I was in a great mood and after walking around all the airport rental car agencies was directed to the shuttle to go to the Payless Car Rental Lot. As I was checking in to get the car the robot behind the counter asks me what level of insurance I would like. I explained I have full coverage and would pass on the insurance. After 10 minutes of the hard sell and an education on deductibles I finally got my point across. He then said they were going to put an $800.00 hold on my credit card, (who wants that when they are going on vacation), in order to rent the car if I declined the minimum insurance which was 17.99 per day, (not much less than what they had quoted to rent the car). I explained what the word extortion meant and was told I could get a cab and rent a car somewhere else. Fine, I rented the car and was explained to that if I bought gas from them it was $2.50 a gallon.

I’m on my way back to the airport to fly home and dead on my feet. Running a little late I figured $2.50 a gallon is fine for gas and went straight to the rental lot. A girl comes out and after seeing the tank is half empty asks me if I would like to go fill the car up and bring it back. I said $2.50 a gallon is fine plus I didn’t have time. She said $2.50 a gallon oh no it’s $6.00 a gallon. I was ready to come unglued but she wasn’t the one that had told me $2.50 so I explained what I was told. She said oh that’s only if you prepay for the gas. I told her that was never mentioned and for sure $6.00 a gallon was never brought up.(I passed 6 gas stations on the way to the airport), again too bad. I got on the shuttle bus in awe and started to talk with the driver. First thing I said was man you must catch a lot of crap from people getting on this shuttle after being treated Payless Rental Car treats people. He told me story after story of people going off as they climb into the shuttle.

It is amazing to me that with the cost of client acquisition as high as it is they basically run their business as if they never ever expect repeat business or referrals. With the internet being totally interactive the way it is now companies can’t get away with purposely sticking to the customer anymore. To me and anyone you know a favor by sending this to anybody you know that might be renting a car in the next 5 years.

This was another small test of attitude as it stung a little bit thinking that this company actually had a system for sticking to its customers and they had just got me. I helped myself out of it by first of all asking the driver why he worked there and promised to send him a book on goal setting that might help him in moving on, (wonder who’s book I sent him: www.prioritiesmanagement.com).

Then going through security I asked the older female security guard if she thought that the picture on my driver’s license made me look bald, got a great laugh from her.

Do you want a reputation like Payless Rental Car in Tampa, Florida.

Be prepared to present and demonstrate YOUR value proposition well enough that your customer will do business with YOU and then deliver on your promises so they don’t have to get it somewhere else for less. Save your customer the time and expense of having to do it right the second time around. If you do, you may be able to be their solution provider the first time around.

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