Sometimes you have to hear the same thing from another source. Here’s the excerpt that applies to us, link included if you want the whole article.
The Dirty Truth About Price
Price is important, but it doesn’t make or break the sale.
Charles H. Green | November 11, 2010
If you think you lost your last sale on price, you’re probably wrong. If you think you’ll win your next sale by lowering your price, you’re probably wrong. And even if your customer told you that you lost the last deal on price, and hinted that you could win the next sale on price, you’ll probably still be wrong if you think it’s about price.
The simple truth is price is overrated. It’s not irrelevant — you do have to be competitive. And it’s not trivial — your price does send lots of signals. But it’s overrated. Let me explain how and why that’s true, and what it means for you. Price is the socially acceptable way of saying no. It’s the business equivalent of “It’s not you; it’s me.” It’s not that they’re lying; they don’t intend to mislead. No, what’s really going on is about the relationship — or the absence of a relationship.
Price does many things. It’s a cost to the customer, it’s a competitive signal and it’s your profit. But it’s also a signal about your relationship. If your customer says you lost on price, odds are you have no relationship. Go work on that, not on your price. If you have a good relationship, you’ll at least get an honest discussion on price, not an excuse.
If you add value via your relationship and you’re not out just to get their buck, then you’re likely to have a customer for life. Because in the end, it’s never ever about the money, it’s always about the value received for the money.
What value do your products bring to someone’s life or business? And more importantly – what value do you add to your relationships?
