In one of our many helpful guides in the PricingBrew Journal, there’s some fantastic advice about how to recognize and deal with different types of buyers. In “Three Types of Buyers That Don’t Buy On Price”, there’s even a chart outlining the different buyer types and their typical characteristics—a very handy training aid and deal-support tool.
But in response to a question in that guide, there’s a piece of advice that many subscribers have told us they’ll never forget. The question is this:
“What can I do if I can’t really tell whether the customer is serious about needing the absolute lowest price?
The advice? Give it to them.
That’s right—if a customer claims they need the lowest price, take them at their word and give them the lowest price you can muster. Now, this lowest price won’t be for the full-featured offering with all of the value-adds—of course, you’ll strip all of that away in order to reach the lowest price.
From here, the guide outlines that two things will happen:
- The customer will be grateful that you were able to quote a price that was low enough to meet their budget, or
- They will yell and scream about all of the value that was stripped-out in order to reach that low price-point.
In other words, by taking them at their word and delivering against their stated objectives, you force the customer to reveal themselves. If they really are a price buyer, they’ll be happy with the low-price/low-value offering you’ve put together for them. But if they are really a relationship or value buyer just pretending to be a price buyer, you’ll find yourself in a much better position to actually get paid for the value you provide.
I love this strategy because it takes all of the games and guesswork out of the equation. You can simply give the customer what they ask for and then let them tell you what they really wanted all along.
Some would say that’s calling their bluff. I prefer to think of it as just providing great customer service.
Three Types of Buyers That Don't Buy on Price
Research says that 60-70% of buyers aren't price buyers---lower your price for them and you just give margin away. Learn how to identify the types of buyers where additional discounts won't help you win the business.
Exposing the Secrets of Price Negotiation
How do you protect your margins when your sellers are so outmatched? How do you keep them from falling for every trick in the book? And what does your pricing team need to know to provide another layer of protection?
