Are You Attracting Price Shoppers?

Posted by Ann Barr in Marketing Tips | no responses

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It is true that everyone is concerned about price, but is your marketing and advertising attracting the kind of customers you really want? Without realizing it, you might be appealing to exactly the kind of customer you don’t want. Do you want premium customers who care most about quality products and great service? Or do you want price shoppers who jump from supplier to supplier? Most of us want premium clients who appreciate top quality products, personalized service and excellent product knowledge.

In reality, only a small percentage of your customers are true price shoppers (excluding purchasing agents of large corporations and universities.) What are the characteristics of a true price shopper?

Jump from supplier to supplier

Slow to pay

Quick to complain

Advertising for Price Shoppers

Look at the focus with these advertisements:

“Deep, deep discounts!”

“Lowest possible pricing!”

“We will beat any price!”

Advertising using the words above is guaranteed to attract price shoppers. And when they call you, they will focus FIRST on price. Not a good way to start a conversation with prospects.

To attract premium customers, advertising must focus on great service, convenience, product knowledge and top quality products.

How to Attract Premium Customers

Contrast the price ads above with the following:

“Virgin Atlantic Business Class Flights are Better when you Fly Upper Class”

“At Lowe’s – People Rule.”

“Purina Cat Chow: A Whole New Way to Better Taste.”

These ads focus on quality, value and service.

Handling Price Questions/Objections

When a prospect asks “What is your best price?” at the beginning of a conversation, before you’ve had a chance to ask questions (and find out what they currently order and how much they are paying now) you can respond with:

“Well, it depends on several variables. Let me ask you a few questions so I can quote you the best price for your situation.”

Be Prepared With Answers

You will feel more confident when you have prepared ahead of time for price objections. Have answers ready in advance for the following questions:

“Is that the best you can do?”

“Can I get a better price?”

Your answer to the first question could be: “When your order is increased to six, you qualify for a quantity discount and you save $45. Would you like to order six today?”

And in answer to the second question:

“Yes, you can get a better price. The next price break is at 12. The toners are $54.00 each instead of $59.00; You save $60.00 Shall I send you 12 toners?”

A price objection is often either:

A smoke screen

A request for more information

A perception that not enough value is attached to what you are selling

Price and Value

According to the findings of a 15-year study conducted by The Sales Board, a Minneapolis-based sales organization: More than 90% of all salespeople volunteer a price decrease without being asked! In addition, according to the same study, most salespeople do not believe their product or service is actually worth the price they charge. The first person who needs to be sold on the value you provide is you.

Get The Word Out

If you are not a discount store, and if you do not want to attract price shoppers, your efforts in marketing and advertising should reflect this fact. Think about everything else you provide along with the products you are selling: experience in the industry, product knowledge. If you offer superior service, good product knowledge and quality products, let prospects and customers know this. Focus on these positives and anything unique that differentiates you from your competitor and you will attract fewer price shoppers.

Bad Referrals

Good referrals are crucial to any business selling products available at multiple sources. Do you really want price shoppers to refer other price shoppers to your company? That’s what may happen if you are advertising and selling on the basis of price.

Think about this:

A recent Consumer’s Report study found that 73% of consumers buy for reasons other than price! So think twice before you focus on price in your marketing and advertising.

About The Author

Ann Barr is a telesales marketing success coach with a passion for teaching. She loves helping people who are starting out in new telesales careers and working with experienced sales reps who are looking for new ideas and tips. In addition to presenting monthly e-classes, she writes and edits direct-mail marketing letters and emails for clients. Sign up today for Ann’s free Weekly Sales Tips and get marketing tips and ideas to increase your sales!