The Price Myth
The Price Myth
(from "Selling: the Secret to Success" by Grant Cardone)
Survey all of the salespeople in the world, even entrepreneurs. You’d find that most believe that price is the number one reason people don't buy their product or service.
This is absolutely NOT TRUE.
Many sales are lost because people within the company incorrectly believe price is the reason customers do not buy their product.
Earning business is ultimately about getting the buyer to fall in love with the product and/or getting the buyer to have complete and urgent confidence that the product or service offered will solve their problems better than any other!
The Price Experiment-
I once had a salesperson tell me that if the price of my seminar tickets was lower he’d be able to sell twice as many tickets. To prove a point I put on an experiment to show that a lower price would not create more sales. I offered a Grant Cardone seminar in Detroit at one-tenth of the normal price. Detroit has always been one of our best-attended seminar markets so it proved an excellent testing ground.
There was only one stipulation to our little experiment to properly test out his little theory. The sales person would not be allowed to sell the product, so that we could determine if price alone would sell the ticket.
Result: the lowest attendance of any seminar I have given in twenty years. Sixteen people bought tickets for 1/10 of the normal price and we normally have four hundred in attendance.
Reality - if price will get the job done there would be no need for salespeople anywhere and that would create a problem for 25% of the world’s workforce.
Reality - If the company keeps reducing the price there will be no margin left for commissions resulting in a problem for 25% of the entire worlds workforce.
Reality - Price is never why someone will or will not buy something from your company, they buy because of love and confidence.
If you want a successful career in sales or you want a successful company you must completely dismiss the idea that price is the reason people buy or don't buy your product!
Also, price is not your problem to solve, but should be the customer's problem to solve. Your problem is to get people to fall in love with your product to the point that they don’t want to spend another second without it! If you are selling a service or product that doesn’t have that love connection then you have to make the buyer confident enough in your product that they want to pay your price because they know that it will improve their company somehow or solve some problem that they want handled!
Even remotely entertaining the concept that price is the reason people don’t buy, will result in you failing! This belief should be treated like the plague in any organization and cut out before it becomes the demise of the company.
Just this week ATA, Skybus and Aloha Airlines went out of business partly due to the belief that price could sell their services!
Sincerely,
Grant Cardone, CEO
800-368-5771
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