Did You Know?

Though pronounced "miss-TAIR-oh", Mistero is actually named after its founder, Mister O - or "Mr. O". Our logo hides this subtly. If you look closely, you'll see the crown of the hat is the letter "m", the brim of the hat is the "r", and his face is the O.

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Monday
Apr142014

Handling Customers Who Want a Lower Price

No matter how fair your prices are, it happens to business owners everywhere.

Whether you're a new startup or an empire of sorts, you always want to grow your client base. The thing is, if you set your prices too low, your business can take a big hit and limit your ability to expand (among other things). Above all, you want your customers to be happy, because in the end, they are the life-blood of your business. 

So how do you handle the situation when it comes up? Do you engage in a price negotiation? Should you lower your price (for them/for all your customers)? Should you walk away from the deal?

First, I recommend taking a step back - forget the dollars and cents for a minute. Remember that no matter what you're talking about, and no matter the situation - personal or business, when you're dealing with people, you're not usually dealing with words, but moreso the people using them. Sometimes what they ask for isn't accurately depicting what they truly want. Your customers may say they want a lower price, but the main reason they focus on price most often, is because they don't know the difference between what you have to offer and what the next company is offering. You have to stand out. You have to focus on value and not price.

Your customer wants value. They want a solid product or service that solves their problem. They want it to work, and they want it done by a reputable company. Simple as that. The cost, though it is first on their mind, is last in their hearts.

So how do you redirect a customer who wants you to lower your price? Ask them these questions:

"What do you know about our product?"

"How confident are you that we can solve your problem (or fulfill you want)?"

"Are you thinking of our product/service as an expense or as an investment?"

When you candidly speak about the value instead of the price, you will validate the dollars and cents that follow. Something that's $5.00 sounds expensive, but something that's $5.00 with great customer support, a lifetime guarantee, and will go above and beyond what they originally had in mind? Well suddenly, $5.00 sounds like it should be $20.00, and they're getting it for $5.00.

"But what if they really, really insist on paying a lower price?"

Sometimes value alone isn't enough to convince a client who is working with a tight budget. In this case, showcase your adaptability and scaling options for them. Something with fewer features, or options to still give them a quality product that works with their price point.

The saying "the customer is always right" is misleading. The customer can still have what they want without you compromising who you are and what you believe you deserve in exchange for your hard work. Remind them of the value you bring them, what their other options are (companies who offer substandard alternatives and other trade-offs), and all-in-all, be flexible. How you treat them will determine how they treat you when telling others of your time together.

 

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