Stop ‘Sticker Shock’ From Killing Your Sales
Want to know the #1 reason companies don’t close sales?
Hint: It’s probably not what you’re thinking.
While “no money,” “needed more info,” and “bad timing” are all solid answers, they’re not the most common reason for meetings that end… well, without a sale.
Not. Even. Close.
The biggest reason people don’t buy during that initial meeting (which radically reduces the chance they’ll buy at all) is good old-fashioned sticker shock.
Yes, really. I’ll explain.
You are asking people for a lot more money than they were likely expecting you to. Though they may be able to afford it, the collision course of their flowery expectations with a (much) more expensive reality is enough to kill a sale.
Think about it…
You sell a fairly expensive service that people don’t often buy. This means most companies don’t have a frame of reference for how much they should expect to pay. And when they don’t know, they tend to underestimate the cost.
So when you show up to sell to prospects, you have to cover a lot of ground to close that gap. This leads to frustratingly long sales cycles, meetings that stretch well beyond what they’re supposed to, and the prospect raising phantom objections (because they’re too scared to admit that, holy cow, this is more money than they were expecting!).
Here’s how you prevent sticker shock in your prospects and make closing ratios soar…
1. Utilize Pre-Positioning Materials
One of the best ways to quell sticker shock is to start building a case for the value of your services before you meet with the prospect.
You can do this by sending the prospect Pre-Positioning materials—informative sales materials and reports that showcase a bit of your Identity while educating them on how to make good decisions for what you sell.
The goal of Pre-Positioning materials is lay out all the main points you’d make during the sales meeting to win them over on price. The key here is that you’re setting expectations BEFORE dropping a price on them. And since it’s in writing—rather than coming from a salesperson’s mouth—it has more credibility and authority.
2. Confirmation Calls
The next step is to make sure your prospect has read the Pre-Positioning materials before your meeting. When you call to confirm the sales appointment, ask the prospect if he’s had to review the materials you sent. Let him know about the important information he’ll find and direct him to the most relevant parts.
Don’t just say, “Hey, read this because you have the wrong idea about price and I don’t want to battle you on it.” Instead, frame yourself as the prospect’s advocate and tell him that the Pre-Positioning report will educate him on the right questions to ask during your meeting (or any meeting, for that matter).
3. Let Prospects Go Price Shopping
If you’re not able to close the deal at the appointment, by all means, let your prospect shop the competition with the Pre-Positioning materials you’ve armed him with. It may seem counterproductive, but if you’re a quality company, you should never be afraid to let an educated prospect shop around.
Besides, he already knows you may cost more than your competitors. And since you gave him the materials he needs to see that low price also means low quality, low service, and low reliability, there is a fantastic chance he’ll come back to YOU.
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