Sales training ideas – How to find out exactly where the competition is on price.

Selling against the competition can offer some unique challenges and one of those challenges can be finding out exactly where the competition is on price.  

Let’s assume the prospect tells you the major differentiator in his decision was price. If you do have individual items broken out in your proposal, as opposed to just a total price*, say the following: 

“Certainly the bottom-line number is a factor, but generally I find that key items always carry a higher price than our competition’s. 

“For example, our tires are under warranty for twice as long as the competition’s because of our higher-quality rubber. This means they are typically about 35 percent higher in price, but I tried to squeeze my price as much as possible. I should be reasonably close to them with the total proposal price. Was I somewhat close or not close at all?” 

After you ask the question, it’s important to be quiet and wait for the prospect to respond. If the prospect comes back with, “You were somewhat close,” continue with, “Was I off by $1,000 to $1,500?” If the prospect comes back with, “Not close at all,” you continue with, “Was I off by $3,000?” 

The total price of your product will dictate what number you use when responding to the statement that you were somewhat close. For example, for the “somewhat close” response we used $1,000 to $1,500 to represent a product that might sell in the range of $30,000 to $45,000. If your product sells for $500,000 and the prospect tells you you’re somewhat close, that might mean anywhere between $5,000 to $30,000. Everything is relative. Use the lines we’re giving you and plug in numbers that make sense for your product or service. 

Once you’ve asked if you were off by a certain number, the prospect will either respond with a yes or no. If he says no, ask, “Was I was closer than that or further away?” Whatever he says, throw out a number that corresponds with the answer. For example, if he says closer on the 1,000 to 1,500 number say, “Was it only $500?” If he says further away, you would say, “Was it $2,500?” 

Continue in this fashion until you nail down the competition’s price. If the prospect gets tired of answering questions, at least get an affirmative answer to one of your ballpark numbers. By getting a yes, you will at least have a general idea of where the competition stands on price. 

Note: With this technique your approach is very important. You need to be very relaxed both in body posture and the tone of your voice. It also helps if you project an image of being defeated as you ask these questions. If you are too direct and forward with this line of questioning, it may seem like an interrogation. 

* - If you have items in your proposal that typically carry a significantly higher dollar value than the competition, you want to break those items out in your pricing. That way you can point to them specifically, sell their value, and perhaps even remove them if they are a deal breaker and there is no other way around the issue.