“How do you respond to a prospect that uses your company for pricing leverage against a current supplier? Company’s that I prospect (cold call) and have quoted 10-15% lower than their current supplier agree to buy from our company but then later tell me their current vendor matched or beat my quote.”
If this is happening on a regular basis, then it’s a clear sign that your “sales process” is broke.
One of the things that stands out to me is that the only reason why you initially won them, was on price.
Have you ever heard of the phrase “Live by the sword, die by the sword”?
Unless a prospect is fed up with a current vendor, often times they will stick with WHO AND WHAT THEY KNOW, even if you can save them a little cash. There’s a comfort level there.
Now, using phrases in your opening value statement such as “we help (industry you are calling) avoid over paying for (product or service)” is a great way to get the door open, but once inside, I would highly recommend you start asking smart engagement questions that uncover other areas of concern/desires that aren’t getting solved with their current supplier / vendor.
This way, when your new account notifies their vendor that their services are no longer needed, they won’t get the business back no matter how low they drop their price.
– Michael Pedone
Michael Pedone teaches inside sales teams how to pick up the phone and close business. He is the CEO/FOUNDER of SalesBuzz.com – An online sales training company.
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