You’ll Never Know Your Customer’s Walk Away Point Until You Know Your Own – PART II
Last time I talked about knowing your walk-away point. I asserted that you can’t know your customer’s walk-away point until you know your own. (Read the last post here.)
Too costly, you say? You can’t afford to lose deals and find out too late what their walk away point was? I recommend providing descoped solutions at the lower price.
You: “Ok, Mr. Customer, I am very happy to rework this proposal to meet your budget number. Of course, we can’t provide extra sprinkles and candles for that chocolate cake at that price.”
Customer: “No, I need those sprinkles! I want candles.”
You: “Ok, I understand. However, our original proposal covered that premium offering. I am trying to respect what you have told me about your need to meet price points of my competitors who don’t offer sprinkles and candles… (Etc.)”
The customer will opt into their own price sensitivity bucket based on their real needs and their real price sensitivity. If you just discount without descoping, there is no downside for them. They don’t have to expose their walk-away point. And if you don’t have one, you will give away your premium quality, service, and excellence for less than it is worth.