If you’re trying to wrap up a sale with a new client and the
final decision comes down to price, you’ve only got a 50/50 chance of winning
the business. If your price is better, you win and if your price is worse, you
lose. If you want to increase the odds of closing more sales, you need to up
your game a little bit and get the focus away from the price. One way to do
that is by asking “why else?”
If a prospect (or client) tells you that they have a proposal
from someone else with a similar or better price, don’t get defensive or assume
you’ve lost the sale, as price is only one factor in their decision. Instead of
throwing in the towel, ask them “if the price was the same, who would you
rather do business with and which policy would you rather own?”
There are two ways that this could go. Either they will tell
you that they would rather do business with you or they’ll tell you they’d
rather do business with your competitor. Whichever way they answer, your next
question should be “why is that?”
When they give you a reason why, your first instinct is
probably going to be to interject and add your own opinion, but this would be
the WRONG approach. This isn’t the time for you to be talking, this is the time
for your prospect to be talking. Your job is to keep asking the right question
in order to gather enough information to overcome the price as a reason to buy
somewhere else. So, your next question should be “why else?”
When they give you an answer, ask them again, “why else?”
Repeat this process until they run out of reasons why. If they stated that they
would rather work with you if prices were equal, you’ll now have a bunch of
reasons why they should work with you even if the prices are NOT the same. For
example:
Them: “I’d rather work with you because you’re more
knowledgeable.”
You: “Why Else?”
Them: “Your policy has better coverage for…”
You: “Why Else?”
Them: “I like the way your coverage extends to…”
You: “Why Else?”
Them: Your office is closer and you were recommended strongly
by my friend, they said you really take care of them well.”
You: “Why Else?”
Them: “That’s it.”
If the prospect gives you 4, 6 or 8 reasons why they would
rather do business with you, you now have 4, 6 or 8 reasons why your price
SHOULD be higher or why they should move forward even though your price is
higher!
If your prospect tells you that if the price was the same
they would rather work with your competitor, repeat the same process as above
until you have the list of reasons why you’re being beat out by your
competition. You now know exactly what needs to be overcome or, worst case
scenario, how to improve so that you’re NOT beat out the next time you find
yourself in the same situation. You will probably find that the information
they have from your competition is somehow flawed or missing important pieces
that will help you overcome the price.
You may also find that you’re offering the wrong product all
together if there are aspects of the other policy that they prefer over yours.
You now have the opportunity to either adjust your offering or recommend
something all-together different that meets your prospects needs better.
Knowledge is power and, no matter what you find out when
asking your “why else” questions, you’ll now have more knowledge about how to
close the sale you’re working on AND how to improve with your next client.
