Jeweller - August Issue 2018

SELLING
YOUR PRICE IS TOO HIGH
TOO OFTEN, STORES ARE PARANOID ABOUT PRICE WITHOUT REALISING THAT A HIGH PRICING STRATEGY
BRINGS BENEFITS THAT OUTWEIGH DISCOUNTING. DALE FURTWENGLER REPORTS.
“Your price is too high!” These words strike
fear into the hearts of business owners and
salespeople like no others but the reality is
that this is the one statement they should be
happy to hear; it can be music to the ears of
good salespeople.
Why? Well, because it opens the door
to negotiation.
Now if you’re not an experienced negotiator
I suggest that you take some classes, read
some books and do whatever you need to
do to develop this skill. It’s one that will serve
you not only in your business but also in your
relationships with family and friends.
ONE SIMPLE QUESTION
In the meantime, here’s one question that
will help you launch the negotiation. When a
customer says your price is too high, simply
ask, “What would you like to give up?”
This simple question puts them on the
defensive; they now have to explain why they
think the price should be lower instead of you
trying to convince them that your price is fair.
Often they’ll cite another store, usually online,
where they can get a cheaper price. To that
you’ll respond, “I have no doubt that you can
find a cheaper price but what will you be
giving up to get that lower price?”
Again, don’t be surprised if they say, “Nothing.
It’s the same product.”
Agree that it is the same or similar product
then ask what they’ll do when they
experience any of the myriad of problems
that can occur after the sale. How will those
be handled? How will they feel dealing
with a call-centre representative in a distant
location that isn’t authorised to deal with
their problem?
How will they feel when left to their own
devices because exchanges aren’t company
policy? If exchanges are allowed, how much
time will they spend shipping the defective
product back and forth instead of exchanging
an item on the spot at your store?
WHEN A
CUSTOMER SAYS
YOUR PRICE
IS TOO HIGH,
SIMPLY ASK,
“WHAT WOULD
YOU LIKE TO
GIVE UP?” THEY
NOW HAVE TO
EXPLAIN WHY
THEY THINK THE
PRICE SHOULD
BE LOWER
OFFER REASONS WHY YOUR PRICE IS HIGHER
THE GOAL
The goal is not to denigrate your competition;
it’s to help your prospect understand why your
price is higher than your competitors. There
are intangibles that are often overlooked that
add real value and can warrant a higher price.
This approach also helps the customer to
make conscious decisions about the choices
they make. If the price really is outside
their budget, it opens the door for you to
guide them to alternatives that will meet
the majority of their needs and provide an
enjoyable experience for them.
It can mean tailoring the offering to their
specific needs or suggesting alternative
products after your questions have ferreted
out what’s most important to them.
LOGIC VS EMOTION
Retail experts will tell you that businesses
looking to avoid a race to the bottom on
price require the following three attributes:
• Offer a distinct, differentiated product
• Be authentic in their pricing strategies with
an accurate understanding of the customer
value quotient
• Stay true to who they are as a brand
• If retailers already know this, why don’t
their pricing strategies reflect it? The short
answer is that there is a huge difference
between logical and emotional acceptance.
Anyone who has worked in sales, however
briefly, has experienced the frustration of
buyers refusing to make a decision even
after acknowledging everything the
salesperson says.
The lesson here is that emotions trump logic
every time. I believe this is what’s happening
with retailers; they know what they need to
do to stop discounting but they can’t get
past the fear of losing a sale to a competitor
with a lower price.
STRATEGY
Here are three reasons why your sales
strategy should include prices that are high
enough to get prospective customers to say,
“Your price is too high.”
It opens the door for you to:
• High prices help you discover what’s really
important to your customers versus what’s
nice to have
• High prices help you guide customers
towards informed decisions that benefit
both you and them
• High prices help you increase margins
despite what your competitors are doing.
Most importantly, high prices help you
recognise early those instances when a
customer really only cares about price.
You can then limit the amount of time and
energy expended in what will inevitably be a
failed effort.
Once you’ve developed the above skills,
you’ll find that negotiating is actually a lot of
fun and a wonderful outlet for the creativity
that exists within each of us so boost your
prices today. i
DALE FURTWENGLER is
founder of Furtwengler &
Associates. He is a speaker,
author and consultant.
pricingforprofitbook.com
August 2018 Jeweller 53