James Stevenson, who owns Virtual Aviation in the United Kingdom, just read The Go-Giver and Go-Givers Sell More and is looking to apply the principles to his business.
But, he had a question, which was:
“While reading the books, I had in the back of my mind a situation I currently have with a potential customer who is proving hard to satisfy. He wants to book a corporate training event with us, but is apparently not interested in the value we offer, but only in getting us to slash our prices.
“I find myself still unsure as to how to apply ‘The Go-Giver approach’ to this situation. Is it simply to give him the discount he wants and take a loss on the deal? I hope not. But if we tell him that we will not sell to him at the price he wants, we certainly won’t be making a friend that will refer us to others!
I’m sure you’re busy, but any advice you can give would be much appreciated.”
—–
Hi James,
Thank you for writing. If I may suggest, it’s not necessarily that he isn’t interested in the value you offer but simply does not see the value as being equal to or exceeding the price.
Now, your response might be, “Yes, he does see the value. But he still wants the best financial deal he can get.”
To that I would reply, “fair enough. Since neither of us can read his mind – and some people simply believe they should negotiate price as a course of doing business regardless of whether the see the value – the only way we can know for sure is if you stick with your price. If he goes ahead and purchases then, yes, he sees the value. If he says no, then he does not see the value.
So, in my opinion, you have three choices.
#1 Simply stick with your price with no further explanation. He either accepts it and does business with you or he does not. While there is a time and place for that (so long as you are gracious and professional about it), I don’t think it’s your best choice in this situation. Neither is the following, which is…
#2 Lower your price. While he may purchase, he will have less respect for the value he is receiving (definitely), will have less respect for you as a person/business-person (probably) and you will feel badly (I would imagine) because you know you are not receiving the financial remuneration you are asking despite the magnificent value you will be providing him. You’re even taking a loss, which is certainly not a good way of doing business. And, there is no reason to do so. That is not what being a Go-Giver is about.
And, regarding the referrals you think you’ll be getting from him as a result of lowering your price and obtaining his business?…If you do get any, he will have first advised those he refers to you that you will eventually come down to the price they ask. Is that really the kind of people you want to be referred to? Instead, my suggestion would be…
#3 Persuade him of the fact that the value you are providing is much more than the money he is paying in exchange for that value. Once you do that successfully, you will have his business. And, you’ll feel great about it. Just as importantly, he will feel great about it because he will be more secure in the knowledge that he is dealing with a person who is extremely confident of the value and overall buying experience he is providing and isn’t afraid to charge for it. You’ll also more than likely receive many more referrals from this person, and these referrals will be of high-quality, expecting to pay full price for the exceptional value you will provide them.
As my good friend, Art Sobczak says…
“Remember, it’s never a price issue; it’s only a value question.”
James, I hope this helps.
—–
James replied that he was going to utilize the above, and he also suggested something else he will try, which was excellent. In fact, it’s something I often do, and simply forgot to suggest it. Any guesses? I’ll post the answer in the next article.
Hint: It comes right out of The Go-Giver and Go-Givers Sell More.
Enjoy this post? Receive an update when our next post is published by entering your best email address below and clicking Get Updates.
In all the years of working with businesses the most painful business relationships were the deal seekers. It seems at times they become so focused on “the deal” they loose focus of what’s being provided. The best business people I worked with would lovingly stick to their guns on price and (of course) that’s exactly what you are saying in your post. Thanks again Bob.
Great post (as usual!)
I like the 2nd portion of #2. That’s the manipulation / duplication effect you don’t want.
Watching for the “rest of the story”!
Thanks Bob,
g
Bob–As usual you are dead on the money! Rarely if ever is it a price issue. It is simply that the prospect can not or has not seen the exceptional value they are about to receive by doing business with you. It is ultimately the salesperson’s responsibility to convey that message.
Another thing that could help in this case would be to more fully understand the prospects needs and any other potential solutions available to satisfy those needs. Some one or some thing appears to be able to provide the solution to the need ath this point providing the significant value that they are looking for.
Totally agree–don’t sacrifice price (value), understand the need and convey the solution more appropriately. This has to be a win-win for all concerned. Thanks!
My guess (based on what I would do) is that he also had a conversation about the benefits the prospective client was seeking in order to determine the prospect’s definition of value. I sometimes struggle with conversations about value. They are, in my mind, similar to conversations about beauty. Value is in the eye of the beholder. My “easiest” sales start with a clear understanding of what the prospect is looking for in the overall solution. Sometimes I even concede that I cannot provide the solution and will refer someone else if possible.
I have not read your books but will be purchasing one within the week based on great feedback that I have gotten about you and your work.
Yes it certainly is a value issue. And our job as marketers — and all business people are marketers — is to be able to convey the value of what we have. And also recognize that not everyone is willing to pay for that value. And that’s okay too.
Many professional speakers ask me why I post my speech fees on my website. They suggest that I may be losing business because someone sees my fee and then decides they can’t afford me and won’t call. And I always respond, “Why would I want anyone to call if they can’t afford me?”
Bentley doesn’t try to sell their cars to Toyota owners. You have to market to the people that can afford to pay your fees. And are willing to pay your fees.
Want to be a go-giver? You can donate your services to a deserving cause. But you can only afford to do that if you get back for the rest of your work.
-RG
Scott, Ocie and Randy, all GREAT points, suggestions, and wisdom that you shared with us. Thank you.
Brother Randy, the only point in which I might take issue with you is in your last paragraph where you appear to be defining “go-giving” as charity. While, hopefully, Go-Givers are charitable people, that’s not the “essence of the thing.” A Go-Giver is simply someone who understands that shifting their *focus* from getting to giving is not only a nice way to live life…but a very financially profitable way, as well. And, they do this via the Five Laws (Laws of Value, Compensation, Influence, Authenticity, Receptively) that John David Mann and I outline in the book. Please see my post, “Beware of False Go-Giver Premises.” http://www.thegogiver.com/blog/2010/03/05/beware-of-false-go-giver-premises/
Dear Bob,
I would just like to add another dimension in your article which I completelly support and agree with.
We also must have in mind various cultural enviroments when talking about the price.
Just for an example in my region (in my neighbourhood), with customers in Austria or Germany you somethimes can negotiate for something on 5% discounts (and this might be a lot for discussion) but for the same thing in Italy without 30% available space in margin you can simply walk away with no closed deal. In Morrocco pe. without 150% difference you are even not serious to come to the table and start to talk about price :))
Bottom line is still the same but approach to one’s end price can vary.
Wishing you all the best from Slovenia
Edvard
Hi Peter, my apologies. I wasn’t ignoring your comment. I must have posted my comment to Scott, Ocie and Randy while you were posting yours. :-). Thank you for your thoughts and feedback. Excellent.
Yes good point Bob. I guess what I was trying to get across is that I believe prosperity is a value-for-value exchange and it doesn’t work if one side doesn’t see the value.
-RG
Thank you Bob! I feel like someone just hit me on the head, ouch, how often have I defaulted to #1 and #2. Just yesterday I was speaking with a colleague about this very subject and YES we were discussing what to do about the PRICE. From now on, if this comes up I will think and talk in terms of improving the way I am conveying the value.
Gotta love Randy Gage’s point too “And I always respond, “Why would I want anyone to call if they can’t afford me?”
Agree on Door #3! Persuade others that VALUE you’re providing far outweighs money invested by clients/customers.
Best door to make this happen? EMOTIONS!
Others interpret value by how you make them feel (and back up their decision –almost always after it’s already made –with logic). So paint a picture of how your training is going to make your client feel… energized, empowered, fulfilled, happy–on top of the world! 🙂
It’s essential to house this conversation on a strong foundation of authentic relationship, transparency, and excellence. Because your last point about “the exceptional value you will provide them” is most important. You must (over)DELIVER the emotional pay-offs you’ve sold and you do this through exceptional value!
I find that a small shift in value perspective often works. Most of us focus on the value that the product or service is going to offer the customer/client. What about the value a customer/client will realize by working with a professional that isn’t in the price haggling business? I think most customers/clients understand that value when it is explained properly.
Thank you, all. Apologies for tardiness in responding to all your great comments since this morning. Been traveling a good part of the day. Edvard, was not ignoring you. I think, as with Peter’s, your comment and mind ended up posting about the same time. Thank you for sharing. Randy, yes, I knew that’s what you mean and of course I agree with that completely. It’s that value for value exchange that leads to “increase of life” for all (to quote Wallace D. Wattles). Thank you Edie, Dr. Mollie, Brother Sean and Geneva for your comments and feedback! I enjoyed all of it!!
“WOW, THATS A GREAT POINT!” Said in a voice like the guy on the Staples commercials.
I have a new line that I am using to train our fund raising consultants (who are constantly struggling with Value questions), “Value begin with hello!” It actually starts sooner, but that souds better. What I mean by this-too often the problem with value is in the “seller’s” head, and is picked up on by the prospective client.
We must believe what we are doing is worth more than we charge! When we do, others will also!
Thanks Bob for posting this, and I look forward to part 2.
Steve, thank you, my friend. Excellent advice, as well!