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.”
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.