Tips on Selling to Price-Sensitive Customers

Customers are more likely to be price-sensitive when:

• They see little differentiation in the product they're buying.
• Service levels are about the same among their vendors.
• Products or services are easily compared.

To reduce price-sensitivity, find ways to increase the magnitude of difference between you and the competition.

Can you:

• Make it more convenient to buy?
• Deliver it quicker?
• Prove you're more reliable?
• Reduce risks?
• Include something for free?

Uneducated buyers are more likely to use price as a benchmark. If your customers lack the knowledge necessary to fully understand pricing differentials, educating them is a smart way to improve profit margins and foster loyal relationships.