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How You Really Lost On Price

Oh, your dream client gave you their business all right. But that doesn’t mean you didn’t really lose on price. You can win the business and still lose on price.

You won the business and still lost on price:

  1. If the only reason you won the business is because you discounted your price more than your competitors did. You didn’t create enough value to move the decision from price to cost (this is about creating value).
  2. If you allowed your dream client to underinvestment in the solution they needed. You let price prevent you from selling your client what they really needed.
  3. If the price you agreed upon doesn’t allow you to deliver the results that you promised. There isn’t any way to win if you fail your client.
  4. If you won at a price that makes it all but impossible of your team to deliver the results. You won at a price that massively stresses the rest of your organization.
  5. If you negotiated price more than once on the way to winning the deal. You fell prey to negotiating tactics. (leading to many of the problems above)

You can win the business and still lose on price. It’s important that you create value and in doing so claim enough value to ensure that you deliver it.

Questions

What are the problems that come along with winning on price?

Have you ever won on price only to discover that you’d have been better off losing?

How do low margins make it difficult to succeed for your clients?

Is it possible that your dream client was already underinvesting when you found them? Doesn’t lowering the price make it more likely that they are dissatisfied?


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Comments

comments

  • http://twitter.com/iSalesGirl IrreverentSalesGirl

    YAY! Spot on!

  • rnottingham

    I love your posts(all of them)…but I +really love your questions. Sometimes I think we read these tipsin a vacuum and the questions help say THIS COULD BE YOU.

    • http://www.thesalesblog.com S. Anthony Iannarino

      Thanks, Rodney! I write the questions because it’s so easy to intellectualize the idea. Knowing something and not acting on it is the same as not knowing. So, I hope they make the posts more actionable. Action is where all the improvement is found.

  • http://www.adamlehman.us/ AdamLehman

    “Have you ever won on price only to discover that you’d have been better off losing?”

    Gosh I wish that wasn’t true. What you end up doing is teaching yourself a frustrating lesson and growing tired of the client rather than having the margin to excede, grow and over-deliver. One of the hardest lessons to learn.

    • http://www.thesalesblog.com S. Anthony Iannarino

      I hear the voice of experience in that comment, Adam. I know it all too well.

  • Marc Zazeela

    Cheers Anthony.

    Winning on price means the next guy who comes along can win on price too. Not a very good strategy for long term success.

    Marc



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