Your customer told you that you're too expensive.
It's not true, but it's useful feedback. You can use this as a springboard to double sales, or sinking sand with downward trajectory.
The junior marketer responds like this:
"I can't sell this product. I'll speak to my boss and ask if we can offer a discount."
With the springboard approach, the senior marketer asks herself the following questions:
Does the market want what I think they want? They like what you offer, but it's not a burning desire.
You sell a bespoke $30,000 ecommerce platform. The market likes the idea of having a purpose built platform platform. But, Shopify offer an off-shelf solution for $10 per month withs 90% of the features your prospect wants.
You're not too expensive, but the market isn't struggling with the problem you solve.
You need to speak with your existing customers, find out why they purchased. Maybe you can tweak your product or pivot to identify an unsolved problem that they would pay for.
2) Wrong audience
There's a market for what you sell, but you're selling to the wrong person.
An ecommerce business grew from $0 to $5 million revenue using the Shopify platform. But, the platform doesn't scale with their business. Now they want a custom solution to help them get from $5 million to $50 million.
You're currently wasting time trying to sell to bootstrapped startups.
You're not too expensive. You're selling to the wrong audience.
They have the problem you think they have. They like the sound of your solution. They don't 100% trust that it works.
You don't need to lower your price. You need to build trust.
That could be:
- Build social proof. Get more case studies and testimonials.
- Prove results. It's not enough to have a nice quote from an existing customer. What result did they actually achieve as a result of working with you. It's the result that your prospects would love for themselves.
- The testimonies aren't relevant. You sell to $50 million revenue ecommerce, but your testimonies are all from $100k startups.
4) Wrong person
Your prospect works for the right company, but they're not concerned with the problem.
You tried to sell to them and they told you "too expensive" as a quick way to get rid of you. It was easier than telling you the truth. They don't understand your product or whether it's relevant to their business.
When you're selling in B2B, identify the job role responsible for handling the problem you solve.
People make decisions that make their boss happy. They solve problems that benefit them personally, not their employer.
5) Cost to migrate
Your price isn't too high, but the cost to migrate is.
Your customer takes into account the time and cost to replace the existing system with your product.
2x better than their existing solution is not worth the switch.
6) Your message is out
Your problem isn't product or price.
The problem is your message. It's not clear and concise. They can't see the value of your product.
Focus on the one benefit. Don't drown it in a sea of 'nice' features.
Simplify through copy and visuals.
7) Wrong time and place
You cold called. They told you "too expensive" to get off the phone.
Easier to sell to someone who wants to speak with you. Build relationships first, sell later.
Your job isn't to drop the price. It's to find the real problem.
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