It was determined that since the challenge most likely had more to do with perceived value than it did with price, that the best alternative was to help the prospect to understand the value rather than lower the price.
Many of you had some terrific comments that I hope will be read and learned from (speaking of value, I’m continually impressed by how much value your comments add to my articles – thank you!!)
James then suggested something he would do next if his prospective customer decided not to use his company’s services, and that was to refer him to one of his competitors who sold their services less expensively.
Now, I know there are those who will “go ballistic” when hearing this and think that – by my encouraging this – I’m not living in the real world of sales and business. But, I’m telling you, speaking on a strictly practical level, it is one of the most profitable moves one can make.
1. It demonstrates that you care more about satisfying your prospect’s needs than about yourself. That right there is a huge demonstration of value; the type of value you would provide if the prospect were to decide that it probably would be a good idea to pay a little more…for that extra value.
2. It shows you have confidence (and if you have confidence, you are probably really good at what you do). People who don’t have confidence don’t refer business – even lost business – to a competitor. This is also very attractive to your prospect.
3. It very nicely and tactfully says (without actually saying it), “If you want the cheaper, less value-based product, go there. When you’re ready for true value at the correct (and higher) price, this is where you’ll come.”
And, you are creating an alliance with a competitor who will most likely be grateful. And, while you never know how and where this last one will come back to you, it often does.
Great thinking James. And, while this was part of the story line of John David Mann’s and my book, The Go-Giver, and it’s something I often do in my business, I totally forgot about it. Again, showing just how much I learn…and re-learn…from my readers.
Again, please understand the practicality of this suggestion. You’ll be astounded at how often doing this results in their changing their mind and doing business with you directly. But, even when not, it often leads to their referring you to others who will. And, even if neither of those happen immediately, you’re continuing to plant those seeds of great will, many of which eventually will take root and lead to business. Now business…later business. It’s all good.
Meanwhile, please share your thoughts. Are there times you refer business to your competition? Have any of your competitors ever referred business to you?
* After posting this, it turns out we hear from James pretty quickly regarding his results.