How many time have you faced the situation when you are just there and still you missed it.( Sorry we have given the contract to xyz company as their prices were almost 50% less than yours). I have faced this situation many times and trust me it is really frustrating for a sales guy to encounter such a scenario. Most of us tend to blame our own organisation for not able to match the pricing with what our competitors are providing without even understanding the superiority of our own product/service.
Few things to remember:
1) Try to analyse the competitors product/service, ask the prospect about their offering. They will for sure will be compromising on one or the other parameter, in most of the cases they compromise on the after sales service.
2) Analyse your own product/service,understand its benefits and USP.
3) Give an elaborated comparison between your and competitors products/services. Show the value addition to the prospect. Justify your price and make customer understand that what additional benefits he will be getting with your products/services.
It is the sales guy who has to make the difference in order to close the sale. Do not get demotivated with price that competitor is providing. Believe in your product/services and try analyzing, where you can make the difference, it can be the after sales service, quality or benefits, talk about your USP’s, talk about the customer satisfaction and try giving them the references so that they can cross-check, this will also help build your and your company’s credibility. In today’s competitive world after sales service is the major concern for all the customers and that is where you can play your cards right by explaining them about your exceptional after sales services.
But if the prospect is very price sensitive and he/she is going to close the deal with the lowest bidder, that is where the challenge is. In many cases most of us tend to leave that prospect and let him go with the lowest bidder. Do not do that mistake, as mentioned above analyse competitors product/service and see where all you can cut the cost for your product. You can always come up with the product with no frills (basic product) and can bundle it with few basic services that customer is looking for. This will give you an edge over the competitor even if your cost is 2-5% more. The reason being the reputation of your company in the market, at such times this would definitely help you. But it is strongly not recommended to close the deal at the price where your company will take a hit in the future as this might spoil the reputation which your company has gained over so many years.
intensive competition, especially among retailers, in which pricesare repeatedly cut in order to undersell competitors or some timesto force smaller competitors out of business.