Six fundamental price perspectives:
Discover the differences between the
competitor's proposal and your proposal.
o The price is lower because
the product or service is less robust.
A time related "special offer."
o
Price versus
competition
Price versus
approved budget
Was it a budget, or an expectation
o Was it based on old or unreliable data?
o
o
Price versus
buyer expectations
Was the prospect told about a less
expensive solution provided to a friend?
Explore the friend's solution.
The buyer can then accept the other
solution at a lower price
The buyer can then accept the higher
price for the original solution.
Your price is being compared to a process
alternative.
o Buying software may be compared to
manual methods.
o There are often new benefits that are
impossible with the manual method
o
Price versus
a process alternative
Maintenance or support costs can be
greater than the original cost.
o 20 years ago hardware and software was
more expensive than support.
o Today hadware and software costs are
low. Labor for support is high.
o Support may be more comprehensive than
in the past.
o Understand and communicate these
changes to the prospect
o
Price versus
a percentage of the
product price (for
continuing services)
Denies the cost of labor of the participant
o - and of extended time to implement.
o Example: lawn care.
Everyone can cut grass cheaper than
hiring a service
Few enjoy spending time on this chore.
"Do it yourself" places less value on your
time
o
Price versus
"do-it-yourself"