Overcoming Price Resistance

*This article appears courtesy of Bob Bly’s Direct Response Letter, located at www.bly.com

When selling against a lower-priced competitor, communicate the price difference – your extra cost – in the smallest unit of measure possible.

Example: You sell an annual service agreement covering home appliances for $395, and a competitor charges $295.

Customers like you better, but are having trouble with your fee being $100 higher.

What they don’t see is that $100 divided by 365 is only 27.4 cents a day.

You need to focus on that small price differential in your selling.

Point out that they are getting superior service — and greater peace of mind — for just 27 cents a day … “less than the price of a first-class postage stamp.”

Source: The Selling Advantage, Special Issue, 10/6/07, p.2.

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