They listened to your presentation and asked all the right questions. You thought you had made the sale but when you follow up you are told, "Your price was too high." It may not be true.
Telling a sales person their price is too high is an accepted business excuse. If the buyer said they liked the other sales person better it would be uncomfortable for both buyer and seller. If the buyer says I liked the other product better it extends the discussion on the relative merits of the product. The statement your price was too high is an acceptable way for a buyer to end the discussion… if you let them.
Assuming similar quality and service it is unlikely you will lose the sale based on price alone. If the customer does make a purchase from a competitor it is more likely it is based on their relationship with the other company's sales person or the lack of the relationship you have with the customer. When you are purchasing do you get competing bids? If you do do you always go with the low bid or do you buy from the sales person who has helped you in the past with a fast delivery on a lost order? You have a relationship with the sales person.
Your sales people need to develop relationships with your customers but just as important they need to develop relationships with potential customers. It can be difficult to develop the relationship with leads but there are several ways to accomplish it. Keeping in touch between bids not just when asked to submit a proposal such as sending an article that you feel can be helpful to the lead or sending congratulations on awards they receive or other significant publicity. Personal contact is also very important. Make courtesy calls preferably in person but if not make a phone call. If you ask a lead how business is you might hear about a problem or challenge they have. If you can offer a story about how another of your customers solved a similar problem even if unrelated to your product it can help build a relationship.
In B@B sales if you have a relationship you will get a couple of advantages: You will get a better opportunity to present the advantages of your proposal and you may get some price concession or a second look at the pricing if you are not the lowest price.
I have had several customers purchase from me instead of with long standing relationships because they saw me more than their other sales person and in almost every case the competitor was cheaper.
Original material copyright © Thomas Robinson 2010
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