Keep your prices stable

Companies that are able to keep their prices stable ensure their long-term success. Like the German newspaper FAZ (Frankfurter Allgemeine Zeitung) writes in an extreme but demonstrative statement: 'One percent higher prices could double GM's profits.'

Nearly no customer can refrain from negotiating the price. But the motives of each individual are quite different: it might be his 'sportive' ambition, the feeling to get too little for his money or just a random try. Don't let them take the wind out of your sails with this question and negotiation, don't forget the basic market mechanism: every offer has to be matched by the respective service or money in return. Customers want something for their money, so let us tell them what they may expect to get:

Question- strategy: Ask for deeper insight into the customers' minds, look out for their comparisons and put up your specific product advantages 'against' the price fight. For example: 'The price of this couch is quite high.' - 'May I please ask you: high in comparison to what?' - 'I have seen a similar model that is 250 € cheaper.' - 'But this more expensive couch features in comparison to the cheaper one an extremely hard-wearing leather which means that you can enjoy the couch for a much longer time period.' After questioning your customer's position you were showing him that he was comparing apples with bananas.

Service- detailing -strategy: Especially if your product doesn't have those unique selling features in comparison with the competitors', you need to explain your exceptional service benefits in order to justify your price. Don't talk about your great service in general but the tangible service details that make it valuable for that specific customer. For example: 'Your competitor sells the identical kitchen for 10% less.' - 'But we come to your house, check and measure everything in order to ensure the exact fitting. And we can deliver the whole kitchen in only x days.' The sales person explains the details of their unique service and shows the added value to the customer.

To summarise: When being asked the ‚price question', make sure that you connect the price to the special and unique customer benefit and added value that comes from your product or your service. And finally, you can win customers that still aren't fully convinced with a small absolute amount rebate (better because more tangible than percentage discounts) or with a 'rebate-in-kind' like a pillow for the couch or an accessory for the kitchen.