Over the last two articles we looked at how James Stevenson, owner of Virtual Aviation in the United Kingdom, could most effectively handle a situation with a prospect who was haggling with him on price.
Understanding that coming down on price is generally not the answer (when you know the value you provide exceeds the price), but to instead communicate the value, James was willing – if that didn’t work – to refer the person to a competitor. And, he did.
Here’s what James wrote back:
“I’m pleased to report back that it worked a treat. When the suggestion of helping him find a
cheaper alternative was brought, he booked straightaway and at full price.”
No, doing that doesn’t always result in obtaining the sale immediately. Sometimes, it takes the prospect giving it some thought. And, at times, they will actually utilize the less expensive/less value-based competitor. Though, you’d be surprised how often the sale is yours and right now. And, as we discussed in the previous article, there are definite reasons why that is.
So, yes; while there are times, places and contexts where this is called for and when it is not, know that offering to refer the price haggling prospect to a less expensive competitor is often just what the prospect needs in order to understand why you are in fact the proper choice.
* After writing this, I’ve decided to add one more article to this conversation; the topic which will be the importance of making sure the competitor you do refer to is both competent and of high character. We’ll look at that next.