Doubt Masquerades as Price Sensitivity
Who is more price sensitive? The customer you already have who loves you or the prospective customer who doesn’t know you yet? The prospective customer of course! Why? The reason is that the existing customer knows you’re worth it. They know you will do what you say you’ll do and that you are worth your price. The prospect doesn’t trust your promises yet. They don’t know your quality, reliability, and service is top notch.
Consider this. Every one of your competitors is out there making the same promises as you. Everyone says they deliver the best products and services with the best customer service, blah blah blah. The customer sees all these claims and has difficulty making an objective comparison. The only objective information they really have for comparison between competitors is pricing.
It is doubt in your promises that masquerades as price sensitivity. If you can do a better job of educating your customers to improve their confidence in your promises, you will reduce their price sensitivity. The more confident you can make them that your product or service is better, and that you will treat them better, the less they are focused on pricing. Take them to lunch with an existing customer who can talk about your superb quality. Show them your on-time-in-full reports which demonstrate consistently high results. Offer a guarantee that shows your confidence in your commitments. Give them a tour of your office and show them your airtight processes for exceptional service. Whatever it takes to build their confidence that your products and services are just as good as you say. Because until they have reason to trust your promises, they are going to focus on price. Not good.
Prospects are swimming around in a sea of unconfirmed claims and they grab for the objective lifeline of price comparison. Instead, throw them a different lifeline!