It’s Hard to Sell with A Low Price

From the very first time I had anything to do with promotional products, it was very clear that we were, and are, in an industry driven by price. As an end-user, I was contacted regularly by distributors that weren’t approved vendors, and the stone cold approach was almost always just about price. Their pitch ALWAYS included the fact that they could provide the same products I was buying from approved vendors, at the same quality and service levels, but at a MUCH lower cost. After a while, I began to tell distributors that I felt I could almost go out into the parking lot and whisper that I needed 10,000 tees, and folks would immediately line up to announce their ‘deal of the century.’

As our organization began to sharpen its focus more on product safety and responsible sourcing of promotional products, the price discussion changed a bit. Expecting a safe and quality manufacturing process for the consumers and dealers that would be receiving our merchandise meant expecting accountability and transparency from the supply chain. That meant we could also expect something other than the lowest price. I learned later in my career that it was okay for the end-user to expect to pay a premium for products you could trust—more on that later.

The fact is, many end-users don’t understand the difference between price and cost. Being able to sell something other than price is challenging, and you likely know that few sales folks in our industry are willing (or able) to meet that challenge. If you are, you’ve got a leg up, and you should most definitely read on.

First, understand that even if you’ve done a wonderful job of establishing all the cost benefits of your product, the end-user has been coached that it is part of the job to ask for a lower price. No matter what, a win for them comes from some price concession, because someone told them it’s part of what they should do. All too often, product safety becomes a point of concession in a rush to close the deal. After all, safe products require an investment in manufacturing, quality, transportation, social responsibility, and accountability. There are certain costs involved if you expect to produce a certain result, and it’s okay as a salesperson to identify them from the very beginning, and to identify them later as a line item on the invoice. Margin is not a dirty word, and repeated product testing is an expensive process that can effectively erode it. A higher price allows you to produce results because you are making enough money to invest in generating those results. Conversely, reducing your price means you have less to invest, and, inevitably, you produce a result that is less than the best.

So, why do I think selling with a low price is hard? Think of it this way, if you have the lowest price, and your client knows there are higher-priced competitors, you set yourself up for the client to assume your product must be inferior. Your low price suggests it’s worth just that—less. If what you are selling was better, then it would be worth more. Dropping immediately to the lowest price isn’t done by magic, your client knows you had to do something to get there, even if they won’t admit it. When you are selling on price, it closes the door to differentiate yourself on anything else.

Take a look at it from the higher road: Selling with a higher price suggests there must be some reason your product is better. Better product, better service, better integration into a program for the enterprise client are things that your investments may allow you to provide. Price-and-item strategy means you’re just selling a product and price, but you want your client to understand that you’re really selling ideas, and they come with a cost. One cost you don’t mind being transparent about- like your strong dedication to product safety. If you’re selling at a higher price, then look at it as an opportunity to set yourself apart, not as a burden to your chances of success.