The "Bang for your Buck" Approach that Eliminates Price Sensitivity
by Kris Mills - Words that Sell
In an increasingly price-sensitive world many business
professionals feel that the only way they're going to win
in a competitive RFP situation is if they slash their prices.
The good news is that in most situations price isn't the
burning issue. It's value-for-money or Return-On-Investment
(ROI) - in other words, how much "bang they're going to
get for their buck".
Now, this is hardly revolutionary news, but by reading
through most of the proposals that sit on my desk you'd
think it was.
8 in 10 proposals I see don't do anything at all to sell the
value for money that's on offer. All they do is list what I'll
get (the features) and then include a price buried way
back towards the end of the document.
Instead -- if they wrote their message in value-for-money
terms instead of a "this is how much it will cost you" format,
they would have a much more positive impact.
Here are some ways that you can communicate value-for-money:
In other words, what is the Return on Investment?
For instance, if a $4,000 dankolabe usually provides a 10%
increase in productivity for a company and the price for your
dankolabes is $6,000 but they offer clients a 45% increase in
productivity, the company would be crazy not to go for your
product because you're offering them a 300% better result for
a 50% higher price.
It's all about selling the benefits of what you have to offer.
Similarly, perhaps you’re offering a product which costs 50%
more, but it lasts 100% longer. Make sure you mention that
fact in the proposal because it helps justify your price.
"Eg. Your investment in 5000 6mm widgets will be $xxxx and
based on test results will last you for 5 years instead of the
normal 2.5 years of conventional widgets. At the end of the
day, that means you're saving money because they're lasting
twice as long."
"The reason why our widgets last that much longer is because
they're constructed of [articulate the construction process that
makes your product stand out]. Not only that, they've received
an xx star strength rating from xyz safety council ... something
which no other "widget" has ever achieved."
See how the above statement sells the return on investment. It
talks price but it also ties in the end benefits they will receive for
the price they pay. It takes the focus away from price and onto
Pricing For Maximum Profits
There are four key components of the entire marketing process. They are known as the 4 P's of marketing. They are:
1. Product 2. Production 3. Pricing 4. Promotion. I will touch on the
importance of assigning the right price to your product or service. This is one of the most overlooked aspects of marketing.
Turn Prospects into Buyers
It may take 4 to 7 visits before your web visitors buy from you. New information, regular changes, and updates keep visitors coming back to your web site. As your visitors develop confidence in you, they will be more likely to buy from your products or services.