The perceived value is the amount of money that a prospect is prepared to pay for what it is you’re selling at a given point in the selling process. Until they are convinced of the value, they’re not prepared to pay your price. As you move through the selling process and the prospect begins to understand the value, the perceived value increases.
If you try for a close too early in the sale, you’re going to get a resounding, “No, your price is too high!” As the perceived value gets closer to the asking price, you get into the “Maybe” or “I want to think about it” area. Once you move the prospect’s perception of value above your asking price, the price objection begins to evaporate and you’re much more likely to get a positive response to any closing attempt.
You will probably never be able to totally avoid having to deal with price objections but here’s the basic rule:
– Don’t talk price until you’ve established value.
Remember, it’s important to sell value. If the prospect doesn’t perceive you as being better or unique, then the only difference you have to work with is price.
For more information on training and coaching to develop Perceived Value and other sales skills, please refer to The Right Skills.
Salesforce Training & Consulting is a professional sales training firm and registered Salesforce.com Consulting Partner based in Toronto, with offices in Boston and Chicago, providing sales coaching, sales management consulting, salesforce implementation, sales training and sales personnel assessments.