Part of the Sales Challenge program that I run each month includes small group conference calls. Here, participants meet in teams of four or five and everyone brings one sales challenge to the conversation so that we can all provide input since we are all fighting the same fights.
Having done hundreds of these calls, I am rarely surprised at the topics that come up but last week a participant posed an interesting question and I thought it would throw it out there to all of you. Here goes…
A prospect asks you for a price and gives you the specs. You’ve met with this prospect and, as part of your vetting process, your Spidey senses lead you to believe that this guy is not just about price. So here’s the question: Do you provide an artificially low price or do you go in this first time with a normal quote?
The two arguments are these: a first time low price sets precedent. Sure, once you are in you might be able to increase your margins over time but you also run the risk of losing what could’ve been a great customer who sees through your tactic. Perhaps you should be honest and say something like, “Look, I could lowball this bid just to get in the door but I’m not going to do that. I would rather give you a fair and competitive price and hope that we can build a trusting and valuable relationship together.”
What do you think? Does that customer even exist anymore? What would you do in this situation? Add a comment below and let me know your thoughts.
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