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Note > Why your price is more competitive, but the customers still don't place an order

Why your price is more competitive, but the customers still don't place an order

Time:2018-09-18 10:30:11

The price is always a big trouble for salesmen to get orders. If the price is competitive, there will be orders. If not, there won't. However, the competitive price can't always gain orders.


Why your price is more competitive, but the customers still don't place an order


Sara had a customer that inquiry on Jan 1 and she quoted right now. In the beginning, the customer replies quickly and asked about the price and the accessories. Then he said the price is too high and hoped Sara reduce the price. Sara agreed to reduce the price and give the reserve price. But the customer disappeared after that. This customer really needed these products and they had cooperated for several years. Sara didn't know if the supplier encounter troubles or they just wanted to compare the price.


This is a common situation that almost all of us will experience and it can be sum up to a fixed format: ‘ inquiry -quote -price is too high-disappeared ‘. Most of the salesmen think this kind of customers want to compare the price, so they think the quotation is high, the competition is fierce, and their price is no competition. Is the problem really the price is too high?


We should confirm whether the price is really high or it's just a way that the customer uses to bargain. For example, the customer took a sample we didn't produce to let us quote for it. After a hard work to find suppliers, we quote for it. As a consequence, they said the price is too high and disappeared. Under this circumstance, the possible reason may be the price is too high. They took the other supplier's product and you also find suppliers, thus your price may be higher than others’. We should try to guide the customers to pay attention to the other products. Ask the use, market, and demand for the products, then recommend your competitive products. You should find your competitive products and recommend it. We shouldn't only do the products the customer want, but the product we are good at.


If this product is our featured ones, the price is not the main problem. The customers will always compare with several suppliers so that they can avoid paying extra money caused by the information asymmetry. The price is too high is just a pet phrase they used to test your price. If the price is too low, they may doubt your quality. So if you have quoted and want to win the customer, the most important thing is to make them confidence with your products. You can send them some test reports that other customers have done, the pictures of products producing, and the package pictures. We can make a sheet like the following sheet shows before the quotation.

Influencing Factor

Goals

Percentage

Final score

Quality

80

20

16

Price

90

25

22.5

Delivery Period

70

15

8.5

Payment Method

50

10

5

Communication

60

10

6

After Sales Service

80

15

12

Company Size

60

5

3


As usual, the customer will consider all of the influence factors. Maybe it is not the sheet showing, but they must have a similar judging criterion. The difference is the thing they pay more attention to. If you don’t know what to say after the quotation, you can ask this influence factors to know the key factors and test the proportion of each influence factors. Thus you can try to add your influence to get the order. After quantifying the influence factors, you will know why they place an order and optimize the negotiation skills.


Edit:2018-09-18 10:30:11