When Your Competitor is Cheaper | Sales Objection

Summary

This 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.