14 Sep Avoiding the Dreaded Price Comparison Trap
As you are building a business case, one of the things you’ll do is explore what tools the prospect is currently using and how much they are paying to use these tools.
As you’re having this conversation, be careful to avoid the trap of price comparison. Keep in mind that what you’re bringing to the table is something new and better that will take their business to the next level.
It’s also important to realize that if the prospect says they’re wanting to make a change, but they’re not wanting to spend any more money, then they’re not serious. People don’t change for the sake of change. Move these to unqualified and move on.
There’s an old business case adage: “Price is what you Pay. Value is what you get.” So how do you frame the value that your solution provides in the most effective manner? Jennifer Aaker, the General Atlantic Professor of Marketing at Stanford Graduate School of Business has recently published research that says the answer might be “time”. You’ve heard that time is money, but in reality, it’s more valuable than that. Time is a more scarce resource – once it’s gone, it’s gone.
If you can frame the conversation around time saved and time your prospect will gain back once your solution is in place, you’ll move their mind away from price comparisons and have a better shot at winning the deal. Ask them specific questions, like:
- How much of your team’s time is wasted with your current solution?
- How much of your time is wasted?
- Where are you wasting the most time?
If you want to go next level with this conversation and convert time into actual dollars, check out the Jordan Peterson video linked here. Also, here is more detail about Professor Aaker’s research, along with some other psychological studies on pricing.