The person who calls your business and immediately starts rattling off questions about pricing is known as a ‘Price Shopper’. While not the easiest to handle, this type of caller is very qualified to buy. And with the right strategy, the price shopper can be turned into a paying customer more often than not.
The reason callers start with price is because they just aren’t that educated about what you do. However, instead of focusing their questions on the things that matter most (such as how your solution works), they begin with cost-related questions because that’s instinctively where most people think they should begin.
Think about the last time you bought a TV. Did you go to the local electronics store and start asking questions about the various technologies available, the clarity levels of pictures, the average lifespan of the different brands? Probably not. If you are like most of us, you went up to the first person you saw and started asking questions about price.
Then, if the salesperson was good, instead of just rattling off different flatscreens and their associated costs– he or she asked you a series of questions to gauge what was really important to you, such as:
“What do you own today and what don’t you like about it?”
“What do you watch most often? Movies, Sports, Video Games, etc…”
“How big is your TV room?”
Why did the salesperson make this pivot? Because he or she knew the golden rule of selling: Price is only an issue in the absence of value. Therefore, the salesperson needed establish value first before moving to the dollars and cents.
So let’s look at the 3 steps involved in properly converting the ‘Price Shopper’:
Step 1: Ask situational questions. In other words, use ‘What’, ‘Where’, ‘Why’ and ‘How’ questions to discover problems that exist for your caller and determine their implications. Prioritize solving the problems that matter most first, and work your way down from there. Some problems can be lived with, and others require immediate attention. The more problems you find that require immediate attention, the greater chance you have at advancing the sale.
ALSO NOTE: If the caller insists on getting a price before they answer any of your questions, it’s ok to give them a wide range and let them know you need to ask additional questions to zero in on the right product and price for them. For example, something like this should work: “Sir/Mam, our pricing starts at $50 and goes up to $500– that’s why I need to ask a few key questions to determine the best solution for you.”
Step 2: Assure the caller they have come to the right place (and that no further calls to other providers are necessary). If you do a great job in Step 1, Step 2 should be easy because the caller already recognizes how unique you are in your approach. They see that you’re solution-orientated, and find comfort in knowing your #1 priority is to help them (not take their money). Therefore, price becomes insignificant in the grand scheme of things. Further assurances come by providing reviews and testimonials from other clients, statistics regarding the success rates of other customers, follow-up documentation (FAQ’s, articles, white papers, and more).
Step 3: Gain some sort of commitment. The commitment you gain doesn’t always have to be financial in nature. In some instances, it’s better to begin the relationship with an agreement to talk further. That’s why many businesses opt to offer free consultations, home visits to continue the dialogue, follow-up phone conversations, etc. Waiting a bit to talk finances with the price shopper can do wonders in converting them to paying customers down the road. The more effective you are at getting the price-shopper to forget about price and focus on value, the better chance you have at securing them as a long-term client.