“How much does it cost?”
The price build up is one of the best techniques anyone can use in any industry when they have to deliver the price of a product or service. One of the most common frustrations that I hear a lot of from my coaching clients and people that approach us at events is how, after a client calls to get a price of a quote on a product, they will hang up and find other prices and typically whoever they feel provides the most value for the least dollar amount will win the battle.
Don’t just quote your price and let your customer go off to find comparisons. Know how to do The Price Build Up, and you’ll make the sale!
The Price Build Up
There are three steps to the process. It’s efficient and effective for getting people to wrap their minds around the value of your service and making them feel the price is the best out there on the market.
Step 1. Build Up The Price
The first step is to build up the price. Do some research and find out how much your product costs in other markets and how much your competition is selling your product for. If you’re selling a high-end pen and you know that your pen is not the most expensive pen out there, make sure you find the most expensive one and know that price. This will be a good price comparison to have. In any industry you know there are services out there that cost more. You build up your price by saying: “A lot of times people assume this product or service is going to cost a lot. People guess that it can be anywhere from $2,000 to $3,000 per month. Compared to company XYZ, that is what it would cost. I think the main reason we have so many people buy our product is….” And then you do the next step of the process.
Step 2. Dropping The Bottom Out
The second step is dropping the bottom out of the price. To do this you say: “The main reason people really like doing business with us is that, instead of costing $3,000 a month, our service is only $497 a month. That’s not bad, is it?” The process of thinking that your client follows is that since the top price is $3,000 the next logical amount in the sequence will be $2,500, $2,000 and so forth. So, by saying $497, you’re dropping the bottom out on the amount they thought the price would be.
- The emotional close could be a story about how another client recently used their home insurance policy, and was so thankful for the coverage and the money it saved them.
Step 3. Emotional Close
The last step in the price build up process is to add emotion to the price. Have some kind of story that a customer has given to you in the past about how thankful they are to use your service. Use this story right after you have given the price. It should sound something like this: “The best thing about this is it’s only $497 a month. That’s not bad considering I was talking to Mr. Jones and he was debating about whether to get the service or not. After thinking about it, he said when it comes to his family’s future and being secure he knew there was nothing more important. He went ahead and signed for the same thing you’re looking at today. Three weeks later he had to take advantage of his new insurance policy. I know that was very unfortunate, but he said thank God he made the decision to buy, and he was able to pay his medical bills and keep on working.” Any kind of story you have from a customer that will attach emotion to the price needs to be added right after you give the price of the product.
When you do those steps effectively you will constantly have people agreeing with you that the price of your product or service is or great value and priced right and they will happily be buying your product or services.
