Questions to Ask Before You Quote a Price
By Ann Barr 13-Nov-02
There is one bit of information that is critical to find out from prospects. But some sales people are reluctant to ask the questions that will give them the important information they need.
Valuable Information
Last week I heard a sales person make a cold call and, after introducing herself and her company, she said: “If you tell me what kind of printers you use, I can give you a price quote.”
What’s wrong with that statement? Plenty.
(1.) By focusing on price first, she gave the impression that price was more important than anything else (like quality, delivery, product knowledge, reliability, value, etc.)
(2.) The price quoted to a prospect who only orders one toner a year is much different than a price quoted to an account that orders dozens of toners each year. It’s critical to find out how many printers to prospect will be ordering for.
(3.) Offering to send a price quote BEFORE she found out what the prospect was currently paying was a big mistake, because . . .
(4.) Finding out what your competitors are charging for the same products you sell – and finding out what your prospect is currently paying before you quote a price is critical.
Reason: If you discount too deeply, you may be giving away too much profit. And you may be quoting a price that is much lower than what the prospect is paying. (And how will you know what your prospect is paying if you don’t ask?)
Questions to Ask
What questions can you ask to find out what the prospect currently pays? The most direct way to ask is: “What are you paying now for this product?” If you don’t feel comfortable asking this question, here are more suggestions:
“You are probably paying [retail price] for that.”
(If they are paying a much lower price than retail, many prospects will gladly tell you their price because they are proud of getting a *bargain*) – or:
“Pricing on that product has been changing nearly every day. What’s the best price you’ve gotten?”
Prepare for Future Opportunities
Asking what they are paying now, lets the prospect know you want his business, so don’t be afraid to ask. It’s the only way you will find out. If your price is a lot higher than your competitor’s price, you need to know that for future reference. Keep the prospect’s price on file. In the future you may have the opportunity to offer a lower price or a “Monthly Special” price.
Ann Barr is a consultant and sales trainer who presents sales seminars in the U.S. and Canada. RS&R News readers can get a complimentary e-mailed copy of her report “64 Ways to Increase Your Sales” by subscribing to Ann’s free e-mailed “Weekly Sales Tips.” E-mail your name to: annbarr@sellingsupplies.com with “Join” in the subject line.
Ann Barr is accepting applications now for her online Selling Supplies seminar which will begin on January 13, 2003. The seminar is limited to 12 people for an intensive four-week marketing and sales e-class. To get an application, e-mail to annbarr@sellingsupplies.com with "e-class" in the subject line.
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