Salespeople who aren’t affiliated with the cost-effective provider in their industry often have to compete with losing deals due to price. No one wants to pay more when they’re able to pay less, and prospects are no exception. This makes pricing one of the biggest obstacles to purchases and a major barrier for many sales representatives. Overcoming this roadblock becomes particularly challenging in the realm of high-ticket sales. High-ticket sales mean selling expensive products or services. The high cost of these items often leads to price resistance, resulting in longer sales cycles and requiring exceptional sales skills. Although there are strategies to win against low-cost providers, having a low-quality product will never put companies ahead. If a product is only slightly better than its competitor’s but costs quite more, companies will lose deals. It’s as simple as that. However, if the product’s price is able to reflect significant points that differentiate it from others, brands can achieve a lot more success.
Consumers
The first step in marketing big ticket items is identifying the specific pain point or problem that the ideal customer is experiencing. Going beyond pricing and features, companies need to delve into their prospect’s triggers, motivations, and pain points. This way they can develop a buyer persona to understand why they would consider a premium product or service for their situation. This information gives companies an edge in qualifying prospects and building rapport.
Envisioning success
Then, companies can work on highlighting how their solution is able to fill the gap between where the potential customer is and where they want to be. That means going beyond practical explanations and painting a picture of what success can look like. This way, companies can improve the customer’s emotional association through the sales conversation by demonstrating their understanding of the stakes involved.
Sales scripts
While conversations with potential customers may go in various directions, having a sales script for the primary stages of the buying journey of each deal can sharpen the company’s sales process. Brands can rely on the knowledge they have of their solution, along with the understanding of their market competitors during sales calls.
Market Competitors
Brands shouldn’t be waiting too long to inquire about their competition. For premium offerings, companies can ask potential consumers about other vendors they’re considering often and early. Ask questions that reveal which brand they prefer, regardless of the price. This helps brands understand where they stand in relation to the competition and allows them to address objections effectively.
Price
When it comes to discussing discounts, instead of blindly offering price reductions, companies can encourage buyers to state the number they’re looking for. They can offer a discount only when the company is confident that the brand is seen as the preferred choice. This will prevent the buyer from using the competitor’s price as a baseline and get them to commit to a realistic number.
Disappointing stories
Brands can encourage decision-makers to share stories of when low-cost products negatively impacted their company. Then, it’s smart to use these stories to highlight how choices made solely based on price often end up costing more in the long run. Remind the buyer, in their own words, of the potential consequences of selecting a low-cost provider.
Eliminating competitors
In situations where there are multiple vendors in consideration, companies should be helping their potential consumers eliminate poor quality options early on. By positioning the brand as a quality option and removing low-quality alternatives, companies can strengthen their sales argument and avoid competing solely on price.