Most businesses find themselves having to compete on cost some of the time. I’m often asked about it by customers. Prompted by a recent conversation with a customer, I’m offering up suggestions over the coming weeks of how to increase your chances of winning when the question of price comes up. Following these ten steps won’t mean you’ll always win, but they’ll increase your chances of success, and you’ll feel better about things if you have a plan. It’s a bit like when when you’re stuck in traffic and decide to try another route. It doesn’t guarantee you’ll get there quicker, but it always makes you feel better!
Whether or not you are competing on price right now, start planning for it now. And if you are being asked about price right now, get a move on! The first step before you get into negotiation is to look at all aspects of your proposition from the customer’s perspective. So rather than what it is you are delivering, what is it they receive and what does it mean to them?
Put yourself in the customer’s shoes and look at every stage of your product or service right from the time the customer first contacts you, through to the point they sign the cheque. Now do the same for your competitors. Where are the differences? What do you do better? Do this, and you will have done the hard yards in preparing to win business when price raises its ugly head. We’ll be using the information and insight you have gained from this exercise in the coming weeks.
- Look at all aspects of your proposition through your customer’s eyes.
- Do the same for your competitors.
Coming next….What is your true price?