Price Is Never The Issue

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Price Is Never The Issue

Encourager-In-Chief: March 29th, 2022

Do you know what is?

As a coach, I’m constantly listening to sales people tell me that they’re having trouble selling because their price is too high. This usually happens when they work for someone else who sets the price. The reality is, price is never the issue when it comes to making a sale. I know some salespeople don’t like hearing this so let me explain.

Most people will buy what they want before they buy what they need. In the television movie about The Temptations, the actor playing Berry Gordy — the founder of Motown records — wants to know if his focus group thinks The Temptations song they just heard would be a hit. A few of the hands go up. To further clarify their commitment, he asks the focus group, “If you only had a dollar, would you buy this record or would you buy a sandwich?” This was a great question because it determines how badly they want the record. Notice that price is not the issue; it’s which will give them a greater return on investment and how soon will they get it.

In the example above, it’s easy to understand the return on investment of a sandwich. You can buy it now and eat it now. You can determine whether or not it’s worth the dollar and how quickly it will provide satisfaction. Not everything we sell has as quick of a return on investment as this example.

The other factor that determines whether or not somebody is going to buy is how big the return on investment will be. To a starving man, the sandwich will do the trick. That’s a big return on investment.