Selling on price - Are your customers really price sensitive?
“Our customers are price sensitive.” “Our product is a grudge purchase.” I’ve been hearing this quite a bit in one of the industries that we’ve been working with recently. Now, I’m not going to dispute the fact that price always comes into the sales process. However, it consistently seems that the businesses that say this allow their staff to get by without fundamental selling skills. It’s the same with their websites.
The question is, what differentiates you in a price sensitive market? Is the way you treat your customers on the phone, in store or online? Is it your enthusiasm for the product? Is it your follow up? Is it the useful information that you share with them? If it’s not, then your customers have only 2 options:
- They shop around for the cheapest price
- They shop around and stumble upon a company that treats them better, and they pay a reasonable, but not necessarily the best price.
People shop on price when they have no other option. Unless you give your customers more than a price you will never know whether your they really are price sensitive.
From the author: If you run an eCommerce website then you might wonder, “How do I know if I’m getting as many orders as I could be through my website?” The answer to that question is in your website’s conversion rates.
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