Monday, December 6, 2010

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.

No comments: