Pricing Table Topics: 8 of Clubs – Buyers Who Buy without Considering Competitive Alternatives

This one is the 8 of Clubs from the Selling Value card deck.

Okay. You're wondering to yourself, do buyers ever not consider competitive alternatives? And the answer is, absolutely yes!

Some easy consumer examples. When you buy popcorn at the movie theater, you couldn't buy popcorn anywhere else. Therefore, you didn't consider a competitive alternative. You just said, am I going to buy popcorn here or not? And that's why they get away with charging really high prices for popcorn.

What about last gas for 75 miles, when you're in the middle of nowhere and you only have an eighth of a tank of gas left? Are you going to buy gas at that gas station that's four times the price? Heck, yes you are! And that's because they know you didn't consider a competitive alternative. There wasn't one to consider at the time.

Our job as salespeople should be to try to find different customers and recognize whether they're going to be looking at, or talking to, competitive alternatives.

For example, if someone was referred to you, they're probably not going to go talk to a competitive alternative. They might, but they might not. So let's treat them as though they won't. What if someone's buying an add-on to a current product they have that you've sold to them? They're probably only buying it from you.

What if they're using your subscriptions and are they going to buy the upgraded package or are they even going to pay you this month for the subscription that they bought a few months ago? In each one of those decisions, they're just deciding, am I going to buy from you? But they're not saying, should I switch? Should I look at competitive alternatives?

There are lots of situations, and product types, where buyers don't look at competitive alternatives. We should be focusing on finding those buyers and making sure we're not discounting, or if we have the opportunity, consider raising the price a little bit. I can almost guarantee you they won't make a different decision.

We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our cards, pick a card, read the saying, then talk for one to two minutes about what that card says. You'll become a better speaker and expert.

If you have any questions or feedback, please email me, mark@impactpricing.com.

Now, go make an impact.

Connect with Mark Stiving:

• Email: mark@impactpricing.com
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