Just before I was getting ready to head to Florida for 10 days, I had to stop and fill up my ACURA MDX. When I got out to fill up my gas tank, something funny hit me and I had to LOL when I saw the gas prices on the pumps. The little light bulb went off inside my head that said blog post time, cuz I knew this was a teaching moment. Because so many security dealers and sales reps cry about pricing – that folks only want the CHEAPEST (fill in the blank) _______________system in town…..Yeah right!
If you have a sales rep complaining that everyone is a price buyer, you need to fire his or her ass immediately. Anyone who views your security system and services as a commodity needs to be put out to pasture, cuz you can’t fix losers. If you own your business and that is your battle cry, then either close up shop and go bag groceries at your local Piggly Wiggly or “grow a set of balls” and dedicate your time, money and energy to learning how to market your security systems at higher prices.
Dealing With Price Cutters and Coupon Clippers
Many people believe that with everything being equal, prospects and existing customers buy on price. But the cold, hard truth is that this isn’t true in the least bit. First off, security systems and services are seldom equal. Secondly, and far more importantly, it is the security dealer’s or sales rep’s job to make sure the prospect knows (1) that all security systems are not created equally and (2) why he/she should buy the security dealer’s or sales rep’s (higher priced) system (educate your prospect!) A security dealer or sales rep must differentiate his/her company product and services from the competitors. This is what SELLING is all about. Otherwise we could have a monkey answering the phones, and giving the prospects a quote, and doing the installation.
Back To The Gas Pump
There is ample evidence that folks don’t always buy on price. For example, on the gas pump, that I was parked in front of, were 3 different prices: $3.81 for regular, $4.15 for premium and $4.25 for super. I filled my Acura MDX up with the premium grade gasoline for $4.15 per gallon, and I noticed the owner of a Porsche Cayenne and a 2011 Ford Taurus was filling his car with the super grade, and when I was going inside to grab a Boston Herald and Dunkin Donuts Great One (24 oz of caffeine), I saw a handyman filling up his GMC Savana with the cheap stuff ($3.81). The point is, if you’re selling a commodity, a genuine commodity like gas, people don’t always buy on price, homeowners and business don’t either.
Hammer this into your skull: When your prospects say they only buy on price, they are only trying to get you to cut your price. But if you have properly educated and sold them on the benefits of your higher-priced premium security systems, they will see the intrinsic value and won’t argue the price. They will know the value is there.