When Your Competitor is Cheaper | Sales Objection
Summary
TLDRThis sales training video script offers a strategic approach to countering competitor undercutting in sales negotiations. The speaker advises against immediately lowering prices and instead suggests guiding the prospect towards results-based thinking. They provide a step-by-step conversation framework to understand the competitor's quote, highlight the importance of desired outcomes over price, and present alternative options that emphasize long-term value. The script concludes with an industry-specific example involving home improvement and windows, illustrating how to steer the conversation towards a solution that aligns with the customer's needs and justifies a higher price point.
Takeaways
- 🔔 Always encourage prospects to subscribe and enable notifications for your YouTube channel to stay updated with new content.
- 💡 When faced with a lower quote from a competitor, ask for specifics about the quote to understand what it includes and potentially uncover if the prospect is using it as a negotiation tactic.
- 🤔 Shift the prospect's focus from price to results by asking if the price is more important than solving their problem and achieving the desired outcome.
- 📊 Use a comparative approach to present different options, highlighting how each choice aligns with the prospect's desired results, not just the cost.
- 🏡 In industry-specific examples, like home improvement, emphasize the long-term benefits and cost savings of choosing a higher-quality option over cheaper alternatives.
- 🛠️ Offer multiple solutions that cater to different result-based needs, such as short-term savings versus long-term value and problem resolution.
- 💬 Frame the conversation around the total cost of ownership, including future replacements and ongoing utility costs, to illustrate the true expense of a cheaper option.
- 🌟 Highlight the unique selling points of your proposal that directly address the prospect's痛点 and how your solution can provide a comprehensive resolution.
- 💼 Encourage prospects to think critically about the long-term implications of their purchasing decision, positioning your offering as the most cost-effective in the context of achieving their goals.
- 📈 Join the Sales Revolution community for additional sales training, resources, and support to enhance your sales strategies and techniques.
Q & A
What is the primary strategy suggested in the script for dealing with a competitor's lower price?
-The primary strategy is to shift the prospect's focus from price-based thinking to results-based thinking. This involves understanding the specifics of the competitor's quote and then guiding the conversation towards the outcomes and benefits of your own proposal.
Why is it important to ask the prospect about the specifics of the competitor's quote?
-Asking about the specifics of the competitor's quote is important because it helps to verify if the prospect is genuinely comparing accurate proposals and to understand what they are actually getting for the lower price. It also provides an opportunity to highlight the value and benefits of your own offering.
How does the script suggest responding when a prospect claims a competitor has offered a lower price?
-The script suggests not immediately dropping your price. Instead, inquire about the details of the competitor's quote and then use that information to guide the conversation towards the results and outcomes that your proposal can deliver.
What is the purpose of the hand gesture mentioned in the script when discussing price versus results?
-The hand gesture is used as a visual aid to emphasize the difference between price-based thinking and results-based thinking. It's a technique to help the prospect focus on the long-term value and outcomes rather than just the initial cost.
Why should a salesperson avoid commoditizing their product or service?
-Avoiding commoditization is crucial because it prevents the sales process from turning into a price war. By focusing on results and the unique value of the offering, a salesperson can justify a higher price and build a stronger case for their product or service.
What is an example of how to seed doubt in a prospect's mind about a competitor's lower quote?
-An example is to highlight that the competitor's lower quote may not include all the features or benefits that your proposal does, suggesting that the cheaper option might not deliver the desired results or could require additional investments in the future.
How does the script recommend presenting alternative options to the prospect?
-The script recommends presenting alternative options that focus on different levels of outcomes and their associated costs. This allows the prospect to see the long-term value in choosing a higher-priced option that provides better results.
What is the significance of the industry-specific example provided in the script?
-The industry-specific example illustrates how to apply the strategy of results-based thinking in a real-world context. It shows how to tailor the conversation to the prospect's needs and the specific benefits of the product or service being sold.
How does the script suggest tying the prospect's problems to the benefits of your proposal?
-The script suggests bringing up the prospect's specific problems and showing how your proposal can solve those problems. This connects the benefits of your offering directly to the prospect's needs and desired outcomes.
What is the final call to action for the viewer in the script?
-The final call to action is for the viewer to join a free Facebook group called 'Sales Revolution' for additional training and resources to improve their sales skills.
Outlines
💼 Handling Price Competition in Sales
This paragraph discusses strategies for salespeople when faced with competition that offers lower prices. The speaker advises against immediately dropping prices to match a competitor's quote. Instead, they suggest engaging the prospect in a conversation about the specifics of the competitor's offer to understand what it includes. The goal is to shift the prospect's focus from price to results, emphasizing the value of the outcome over the cost. The speaker provides a generic example of how to steer the conversation towards results-based thinking, which involves questioning the details of the competitor's quote and proposing alternatives that align with the prospect's desired outcomes. The approach is designed to prevent commoditization and position the salesperson as a provider of solutions rather than just a commodity.
🏠 Applying Sales Strategy to Home Improvement
In this paragraph, the speaker provides an industry-specific example using home improvement sales, specifically window replacement. They illustrate how to counter a competitor's lower quote by offering the prospect different options that emphasize long-term value and problem-solving. The speaker suggests presenting the prospect with three choices: cheap windows that may need replacement soon, mid-range windows that offer a balance of cost and durability, and high-quality windows that solve specific problems and provide long-term savings. This approach encourages the prospect to consider the total cost of ownership and the benefits of investing in a solution that meets their needs effectively, rather than opting for the lowest initial cost.
📢 Inviting Engagement and Further Learning
The final paragraph serves as a call to action, inviting viewers to join a free Facebook group for further sales training and resources. The speaker emphasizes the value of community and continuous learning, offering a free mini-course called 'NEPQ 101' as an incentive for joining. This course is designed to equip participants with a set of questions and phrases to use in various sales situations. The speaker also mentions regular live trainings and Q&A sessions within the group, highlighting the benefits of networking with other sales professionals, entrepreneurs, and executives who are also looking to improve their sales skills.
Mindmap
Keywords
💡Competitor undercutting
💡Price-based thinking
💡Results-based thinking
💡Commoditization
💡Proposal
💡Disarming the prospect
💡Utility bills
💡Industry-specific example
💡Value proposition
💡Sales strategy
Highlights
The importance of subscribing and enabling notifications for new training videos.
Strategies for dealing with a prospect who mentions a cheaper quote from a competitor.
The technique of asking for the competitor's quote to understand what it includes.
The possibility that prospects may lie about competitor quotes to negotiate a lower price.
The approach to disarm a prospect by openly discussing the competitor's proposal.
Shifting the prospect's focus from price to results-based thinking.
Using a generic example to illustrate how to guide the conversation towards results.
The framework for addressing a prospect's request for a lower price.
Offering alternatives that highlight different outcomes based on price points.
Providing industry-specific examples to demonstrate the application of the framework.
The concept of showing the long-term cost of choosing cheaper options versus higher-quality solutions.
Encouraging prospects to consider the total cost of ownership rather than initial price.
The strategy of presenting multiple options to guide the prospect towards the desired outcome.
The use of storytelling to connect with the prospect's needs and problems.
The importance of focusing on solving the prospect's specific problems to justify the price.
The formula for turning a price negotiation into a discussion about value and results.
Invitation to join a free Facebook group for additional sales training and resources.
The offer of a free training called the NEPQ 101 mini-course for group members.
Transcripts
so how do you close a sale when one of
your competitors undercuts you let's say
that you gave the prospect a proposal
with different quotes in it and they're
also getting different quotes and bids
from some of your competition and they
say something like this to you they say
first of all go down to the bottom of
this video hit the subscribe button
that's probably important for you hit
the subscribe button and to the right of
that or maybe the left i don't know
somewhere in there there's like a little
bell that's your notifications button
hit the notifications button as well so
you get notified by youtube every time i
post a new training video which i
typically do two to four times a week
they say hey um you know xyz company
gave us a quote that's cheaper than
yours can you give us a better price now
instead of then just giving them a
better price where they commoditize you
now and now they're going to go back and
forth and negotiate you down you want to
get the prospect thinking results based
thinking rather than price or cost-based
thinking so here's how you do it i'm
going to give you a generic example of
how to start that conversation and then
at the end i'm going to show you how it
works in like an industry specific
example so you can see the framework
that we're using hey can you give me can
you give me a cheaper price like the
company xyz gave us a lower bid or a
lower cost or a lower proposal first of
all you want to find out what that quote
actually is and what it's actually for
so you do it like this yeah not a
problem um can i ask what quote they
gave you
and for what specifically
now why do you want to ask that question
because you have to realize a lot of
your prospects just lie to you they
might not have even met with one of your
competitors they might be just saying
that to try to get you to come down on
your price so you have to understand
that if they can't show you the quote or
the proposal then you know that's
probably what they're doing now so let
me go through this again
yeah that's not a problem um
can i ask what quote they gave you and
for what specifically just so i have a
better understanding well yeah they said
it's going to be this for a b c or for d
f and g ah okay
can you go through the proposal with me
specifically just so i understand
because you know maybe you're better off
going with them that disarms a prospect
where they're open to going through what
that company proposed to them so you
know exactly what you're dealing with
that way you're not guessing
throwing mud against the wall hoping and
praying that something you're gonna say
is gonna stick with them and they're
gonna buy okay now here's where we start
to get them thinking results space
thinking i'm going to move this up here
for you okay
yeah they gave us you know xyz cost for
a b and c and you find out specifically
what the cost is and what it was for
then you say this
well
it really just depends on
what type of result that you actually
want
i mean is is price the most important
thing to you
or solving the problem
and actually getting the result you want
now what did i just do there
when i said now is price the most
important thing to you or actually
solving the problem and getting the
result you want is price the most
important thing to you look at my hands
is price the most important thing to you
or actually solving the problem and
getting the result you want see how i'm
using my hands price based thinking
results based thinking that question
flips their mind when they start
thinking about the result the end result
not the price you don't want your
prospect thinking of the price because
then you're going to get commoditized
with everybody else and compete on price
you want to be able to get them thinking
results based thinking because every
sales person in your industry doesn't
know how to do that like i'm showing you
how to do it all right now they're going
to say well yeah i want the result but
if we can they might say yeah i mean
definitely the result's more important
or they're going to say well i mean we
definitely want the result but you know
price is important too or they might say
we definitely want the result but you
know if we can get a better price that
would be good then you can say if they
say that you're going to go here i'm
going to show you this
can i yeah that's not a problem can i
make a suggestion to you after you this
is after you've seen the quote and the
proposal you know what that is what they
quoted you is for x y and z
which actually only does a b and c now
i'm being generic for a reason you have
to plug in that gap now we could give
you that exact same quote for that but
like i said
it just depends on the end result that
you want so let me go over that again
what they quoted you was for x y z which
only does
a b and c so now you're getting them to
think like oh maybe the company that
gave me a cheaper quote
is not going to give me the result that
i really want see that seeds doubt in
their mind then you agree now hey we
could give you the exact same quote for
that too
but like i said it just depends on the
type of result that you want now what
does that give them thinking again
results based thinking rather than
price-based thinking now i'm going to
give you an industry specific example
just so you can see what happens at this
point let's say that you sold home
improvement okay and let's say you sold
windows okay like i said we train every
industry on planet earth i'm just going
to show you one example because we don't
have much time in this reel or post that
you're watching me alright
we could uh i mean we could install
these cheaper xyz windows that they
quoted you you know you would just end
up having to replace them and you know
maybe five seven years
once they start wearing down
and your you know utility bills will
stay the same so we could give you the
same quote you know for the cheap
cheapest windows if you want now we
could also put in here's where you're
going to give them an alternative
we could also put in like the mid range
window that would last a bit longer you
know maybe 10 12 years and it would cut
your utility by whatever percentage 10
i'm just going to throw something i
don't know okay what depends on the
state you live in for that industry now
so you're giving them options now we
could also put in the mid-range window
that would give you a you'd last a bit
longer maybe 10-12 years and cut your
utility bound by xyz percentages or
here's where you get them back to the
original proposal you had or we could
completely solve the problems you
mentioned and put in the abc windows now
you want to mention those problems okay
let's say for windows they had a problem
with cold air coming in their infant's
room at night and the infant would wake
up and then mom and dad have to wake up
and they're draggy at work and they hate
their lives because they're always
having to get up because it's so cold in
their infant's room that could be their
problem plus their utility bills are
high because of that and they're over
paying so maybe that's their problem
that you bring out of them i mean we
could completely solve the problem where
there was no cold draft coming into your
daughter's room you know we could do
that and we could put in the abc windows
that you said you originally wanted
those are going to last the 20 to 25
years and that would cut your utility
bill down by i'm just making up a number
30 percent
so the question is so you give them the
three options results based thinking so
the question is really
if you thought about it
which is really more expensive
is it more expensive to get the extra
funds
to put in for the windows
that last the longest you'll increase
the value of your home and cut your
utility down build down by xyz
percentages or
is it more expensive let me go this here
or is it more expensive to put in the
cheap windows
that don't really
last that long
the cold air still comes into your
daughter's room at night
and you end up having to replace the
windows again in five years anyways like
if you thought about it
which is really
more expensive
okay
what did we just do there we got the
prospect again at the end to think more
results based thinking over price or
cost based thinking does that make sense
i want you to do that next time now i
just gave you a formula in the beginning
of that
for
let me go back here
this crazy white board here
so i just gave you the formula
that you can use for any industry here
in the beginning
and then at the end i showed you an
industry specific example so you want to
watch this a couple of times and write
that down write that formula for your
specific product or industry that you
actually sell in i want you to do that
next time a competitor comes in and
undercuts you and the prospect says hey
you know we got a proposal or a bid from
xyz company that's cheaper than yours
can you give us a better deal can you
give us a better price rather than you
just dropping down where your company
loses tons of money you lose a ton of
commissions if you take them through
that formula and get them to think
results based thinking over price-based
thinking they will always pay you more
than your competitors because they're
more you've got them to more focus on
the end result than the price or the
cost because they start to view at the
end that it's actually more expensive
by going with the cheaper option from
another competitor than it is to go with
a higher based option that completely
solves their problems and gets them the
result they want and they'll gladly pay
you more for that try that next time and
see how that works for you
now if you're wanting to learn how to
sell more of your products and services
than you are now join our free facebook
group go to
www.salesrevolution.pro we should have a
link on here somewhere sales revolution
dot pro
right when you join the sales revolution
dot pro facebook group because we've got
thousands of entrepreneurs and there are
thousands of sales people like you
thousands of coaches consultants
executives in there that want to sell
more right when you join check your dms
because we're going to message you some
of my team is going to message you a
free training called the nepq 101 mini
course it's going to give you a list of
different questions and phrases you can
use in any sales situation that alone is
going to help you sell more than what
you're doing now and we go live in the
facebook group about three to four times
a week with different subject matter
trainings different q and a's different
client interviews that will also help
you sell more join the facebook group
sales revolution dot pro
see you there
you
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