Impact Pricing Podcast

#459: Pricing Table Topics: 4 of Clubs – Learn the Competitive Situation Before Negotiating

This one is the 4 of Clubs from the Selling Value card deck. 

It turns out that procurement people often lie to us. And it’s their job, not necessarily to lie, but it’s their job to get a better price. 

And what often happens is they’ll say to you, “Hey, you’re up against these other two or three competitors. In this situation, you have to lower your price if you expect to win this deal.” And it turns out oftentimes that’s not true. Oftentimes, you’re not up against two or three different competitors. 

Back many, many years ago when I was in sales, I recall procurement people actually saying, “You’re up against this other competitor.” And it turns out the competitive product they were looking at wasn’t even similar to the product that I was offering. And so, it was obvious to me that they were just lying.

“Go back to the committee.”

– Mark Stiving

And in fact, I experienced this extremely clearly when I was on the buying situation. I was part of a committee and we’d chosen a software application that we wanted to purchase. And I was in the meeting when procurement said to the company that we were going to buy from, “You’re up against these other two competitors, you better sharpen your pencil.” And I knew for a fact that wasn’t a true statement. 

So, please be careful and the way you know is, go back to the committee. Find out if the committee selected you or selected you as one of several different possible alternatives.

We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our cards, pick a card, read the saying, and talk for one to two minutes about what that card says. You’ll become a better speaker and expert.

If you have any questions or feedback, please email me, [email protected]

Now, go make an impact.

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Tags: Accelerate Your Subscription Business, ask a pricing expert, pricing metrics, pricing strategy

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