I was thinking about all the things we pay for that used to be free and are still free, yet we pay for them anyway. How many can you think of? I came up with the following:
Water – you can get an unlimited amount of drinking water from the tap but we not only buy bottled spring water, we buy FIJI, one of the most expensive brands, because it tastes so much better. We pay around $1.25/pint-sized bottle.
Radio – you can listen to as much broadcast radio as you want, but all of our cars have SiriusXM subscriptions to the tune of around $600 annually.
Television – you can watch plenty of free broadcast TV and your local channel’s streaming content, but we have five AppleTVs, and between Netflix, Amazon Prime, Hulu, Apple TV plus, and others, we pay close to $75/month for various streaming services.
Software Applications – there are free versions of most of the cloud-based software we use but I pay for versions that have all the features I want.
I get more value when I pay for the features I want than I can get with free versions. In other words, the pain of not having better tasting water, more listening and viewing options, and software that does everything I need, is exponentially greater than the savings I would realize from not paying a premium.
What’s the point? When prospects tell you that they’re going with the lowest price, it’s total crap. They might be saying that, but are they required to do that? If they have any bottled water in the kitchen, pay for any streaming, or software then it’s simply not true. Can you say bluffing?
I don’t blame companies for trying to buy for less, but it doesn’t mean you have to sell for less, or match or beat someone’s price. They’re just saying the words and waiting to see if you’ll bite. Just about a year ago at this time, I wrote another article about selling value where I used Dunkin Donuts coffee as an example.
So what should you do when a prospect asks for a lower price?