Value Is More Important Than Price
It’s needlessly risky to compete solely on price. By doing so you become a commodity, which means that your margins must grow narrower and, eventually, you’ll need to churn more business just to stay afloat. A better position is to create points of differentiation that are a perceived value to your prospects.
Here’s how to do this:
Go deep into your prospect’s company and integrate into as many departments as possible. Know most (or ideally, all) of the key players and decision-makers. Understand how each department perceives value, and build this into your prospect profile.
Price shoppers should not be immediately scorned and ignored. Remember: your prospect may define the purchase decision in terms of price and say something like: “you were the most competitively priced option for us.” What you should hear in this is: the value of what you’re offering appeals to us more than the competition.
Don’t just be a seller, but embed yourself into your prospect’s company and establish yourself as a solutions provider. Position yourself so that there is a clearly negative impact, particularly on their bottom-line, if your services are eliminated. Schedule a meeting to review successes and detail how you can participate in the firm’s growth in the future. Vendors are replaceable; advisors are not.
Your perceived value/value proposition may – and probably will -- be different for different prospects because their needs, interests and concerns differ. This is fine and not a red flag. In fact,i f you hav ea one-size-fits-all approach...umm...stop. Also, just for your own interest and possible entertainment: you can confidently dismiss prospects that care only about price at the expense of value. These people will continue to be dissatisfied, and will “shop” many times before they get what they want. These are not customers that you want. Let ‘em go.