When someone asks you what your product or service costs – how do you answer?
Do you respond with the price and are left trying to justify it?
Or do you use the “what does it cost” question to position the value you has to offer?
Same question but how you answer it (and how your team is trained to answer it) determines whether you are forced to compete on price or you set up an opportunity to create a customer for life and get paid for the value you provide.
The problem with the price question is generally your prospects don’t understand what you can do for them and don’t even know the right questions to ask.
Let’s say you own a carpet cleaning company and you get a call from a home owner. Sking for how much you will charge to clean their carpets.
If your response is a price – let’s say $9.99 a sq ft or $99 a room (completely made up prices!), the the prospect who is calling is going to compare your company completely based on price.
Which means you are now bidding for carpet cleaning jobs against anyone else in your community including companies that offer a completely different level or service and results – or worse a bait and switch company wi unethical practices.
Are you confident in what you do? Do you create value and results for your customers? Then you must communicate that or your customers won’t have the necesssary details to choose you.
In our carpet cleaning example the company may use stronger cleaning equipment that results in a deep down clean that will last longer, or they use cleaning detergents that are not harmful in the house, or they have strong extraction equipment at removes dirt and any soap residue prolonging the life of the carpet.
And we are really just scratching the surface. How many different things do you do to take care of your customers? If you a not communicating what you do, your customers are not considering it when they are making a buying decision.
So how do you use an inquiry on your price to position the value you have to offer?
Start by listing all of your company’s features – what are all of the things you do or offer your customers? (hint – do this exercise with your team)
Next, for each feature – what is the benefit your customer receives? How are they better off?
And finally for each feature and benefit – why is that important for your customers?
One of the challenges I commonly see companies dealing with when creating their marketing message is either they focus on what they are doing for customers (the features) or try to jump to the end and capture what is important to your customers without going through the process.
Either way is painful and doesn’t produce the results you are looking for.
The process to identify what is important to your customers is always:
- identify features
- identify benefits for each feature
- why is that important to your customers
And then you reverse the order when crafting your marketing message:
- clearly communicate what is important to your customers
- and back it up with your benefits and features (how you deliver the benefits)
If you can’t say what you do in a simple clear value based message, people are commoditizing you – judging you solely based on price.
Be in control of the conversation – use questions about your price or business as an opportunity to clearly communicate the value you provide and stop being squeezed on price.