PricingBrew

Insights & Tips

Already a subscriber? Login

Become a subscriber and unlock an information arsenal focused on making your pricing efforts more effective.

Why Are Price Buyers Sometimes Chameleons?

Once you’ve dealt with a customer on a particular transaction, it’s really easy to carry that singular experience forward into every other interaction with that customer.

For example, let’s say that the customer pushed hard for the absolute lowest price and was even willing to consider a stripped-down offering in order to get it. In this instance, it would be perfectly reasonable to deem them a true Price Buyer and respond accordingly.

No problems so far, right? You’ve correctly assessed the situation and as a result, you can take the appropriate steps to protect your margins.

But wait…there’s danger, Will Robinson…

In the most recent installment of our ongoing interview series with Nelson Hyde, Are They a Price Buyer or a Poker Player?, I learned that while it’s extremely important to understand the type of buyer you’re really dealing with, it’s dangerous to typecast that buyer moving forward.

According to Nelson, Price Buyers may not always be Price Buyers. Like chameleons, the same purchaser or company can become a different type of buyer, depending on the circumstances of the deal at-hand.

This week, when buying non-core or easily-sourced goods, the purchaser may indeed present themselves as a true Price Buyer. But next week, when looking to buy something else—something more differentiated and value-laden—that same purchaser may in-fact be a Value Buyer, Relationship Buyer, or more likely, a Poker Player (a Value or Relationship Buyer who’s just pretending to be a Price Buyer).

In the interview, Nelson then goes on to provide a number of insights and tips about what to look for—the “tells” and tests that can help you determine which specific type of buyer is presenting themselves. But once you learn these identification techniques, it’s important to use them to diagnose every transaction—even with the same customer.

Remember: Today’s Price Buyer could be tomorrow’s Relationship Buyer. And not recognizing that the chameleon has changed colors could cost you.

Get Immediate Access To Everything In The PricingBrew Journal

Related Resources

  • Are They a Price Buyer or a Poker Player?

    Nelson Hyde Interview Splash4

    It's easy to assume that when a buyer says they need a lower price, they really mean it. But making the wrong assumption can be very costly. Nelson Hyde explains how to tell when a buyer is bluffing.

    View This Interview
  • Getting Beyond Pricing to Make a Real Impact

    guide_getting beyond pricing to make a real impact

    To be effective in B2B pricing, you have to be able influence all of the different functional groups involved. This guide exposes how to influence the upstream decisions that can ultimately make or break your pricing efforts.

    View This Guide
  • Combating Competitive Pricing Pressure

    Guide_Combating Competitive Pricing Pressure

    Pricing pressure is just a fact of life. But how well you handle that pressure can determine whether your business ultimately succeeds or fails. This guide exposes 15 ways to address (and prepare for) competitive pricing pressure.

    View This Guide
  • Suffering from a Costly Case of Sticker Shock

    Case_Suffering from a Costly Case of Sticker Shock

    In B2B environments where discounting is habitual, it's easy to think that your list prices don't really matter all that much. But before you conclude that list prices are inconsequential in your business, consider this case of a B2B reseller who just couldn't see what they were missing.

    View This Case Study