The most troublesome salesman in marketing is price competition. Price is the key issue that ultimately determines whether a deal is made or not. Any sales cannot be separated from the price negotiations.
What is price?
Almost everyone thinks it's the price of a product, or how much it costs. In fact, this argument is just the most intuitive and shallowest thought. Price = price + character, from the product's point of view, character = quality + value, that is, price = price + quality + value, this is a complete product price meaning. Separately, it is quality that determines value, value determines price, and price positioning of each product is inseparable from these three aspects. Manufacturers also use this as a basis to conduct a reasonable price positioning on their products. As the saying goes: "A branch of money is a piece of goods." That's what it means.
Usually, there is a “pricing target†for the pricing of an enterprise. The pricing target is the purpose and standard that the enterprise consciously requires when setting prices for the products it produces or operates. It is the main factor that guides companies to make price decisions. The pricing target depends on the overall goals of the company. Companies in different industries, different companies in the same industry, and the same company may have different pricing targets under different periods and different market conditions.
There are three types of pricing targets for general companies: the goal is to obtain profits, to increase the market share, and to meet and prevent competition.
As a salesman, our responsibility is to sell products based on the company's pricing, rather than requiring companies to develop a price that is favorable to their own sales, and price setting should be based on the company’s goals.
A good salesman will do the price, not complain about the price. The price is to be able to better control the price, not to do low prices, not high prices, the price control ability is a direct reflection of a salesman sales level.
Second, price competition and non-price competition However, almost every salesperson will complain that the biggest problem in the sales process is price competition. In fact, there are two kinds of competition between peers, one is price competition, and the other is non-price competition. Price competition is a kind of competition in which customers get the same satisfaction through price reduction. Non-price competition is value competition. It refers to a kind of competition for customers to provide products and services that are better, more distinctive, or more adaptable to customer needs.
I used to talk about the concepts of "price marketing" and "value marketing." This is the core concept of price competition and non-price competition. If the two concepts are finely distinguished from the perspective of competition, non-price competition has the following characteristics compared to price competition:
1. Non-price competition is the development and sublimation of price competition. I have always felt that the best way to compete is to avoid competition. Therefore, the best way when we encounter price competition is to avoid price competition and do value competition. Case: I once met a customer who insisted on the reputation of Hangcha when purchasing a forklift. He thinks that Hangcha's price is famous and its price is low, but our price is high and its reputation is not great. After I listened to his words, I clearly learned that the type of forklift truck he is currently using is the old model of Hangcha, so I briefly introduced the obvious differences of our products to the customer based on this result. Accepted my product and thought it was worth the money.
2. Non-price competition is the change from single-factor competition to multi-factor competition. Low price competition is mainly due to low technical content and low added value of products, low corporate brand value, and weak corporate image strategy. Instead of price competition, it pays more attention to conveying the advantages of these areas to customers.
3, non-price competition to promote the sales approach from the marketing concept to the concept of marketing and then to the concept of competition. Sales promotion is the earliest model of sales. It is product-centered and deals with the products produced; marketing is customer-centered and meets customers’ consumer demands as an updated standard for products; the competitive concept is based on customers and competitors. The center must not only meet customer needs but also differentiate itself from competitors in product positioning, R&D, information communication, and marketing strategies in order to achieve maximum profitability.
4. Non-price competition focuses more on differentiated marketing. The diversity of customer needs will invariably produce a diversity of market demands. The difference strategy is the strategy of “I have no people, I have excellent people, and I have the best peopleâ€. From the marketing point of view, we must take advantage of our customers' personalities and needs to take the lead in avoiding weaknesses, take the initiative, attack new opportunities, and win surprises. Case: The same is the previous case. I use the advantages of our products to compare with the disadvantages of our competitors, highlighting our differences, and this is differentiated marketing.
Therefore, doing more value competition, less price competition will benefit our own development, and it will also benefit the improvement of the company's profits. This is a competition of skills and strategy, and it is also the highest expression of marketing standards.
We need to have the quality and quality of a BMW Mercedes camp instead of selling the low and low end of a van.
Third, the quotation strategy Of course, non-price competition is one of the most favorite and most desired forms of competition for each of us. However, price wars are sometimes still inevitable. Price warfare is one of the most primitive and common sales strategies. It has the characteristics of strong lethality and quickness. It is the most commonly used competitive method for most manufacturers or salesmen.
So, let's talk about the bidding strategy in the marketing process.
1, the formation of the price system.
One of the topics that we usually cannot avoid in the sales process or when communicating with people is the comparison of the price of a product with the price of a peer. Regardless of whether it is direct selling or acting, taking a three-ton forklift as an example, we have a price of 5.8, Hangzhou 59,000, a total of 57,500, and Longong 55,000. This series of data is our price benchmark in our own or in the minds of our customers. If it goes up or down, it represents a change in the price system. However, what I want to say is that this is just a price position, not a price system. The price system should be reflected in the end consumer market, with the majority of purchasers' transaction prices as the norm. This kind of system is not determined by the customer, nor is it decided by the factory, but is determined by the frontline salesperson who is directly involved in the sales.
In fact, the so-called price system is only formed by the psychological floor price of front-line sales personnel. For example, when we visit a client, we will presuppose a variety of issues and scenarios. The most conceived ones are the possible counter-offers and peers' quotations. We usually set a bottom line for ourselves in advance. How much, how much does the customer agree to trade, how much does the contract sign, and so on. Well, before the sale, a price curve has already formed in our hearts, so we will continue to induce or be induced by the customer to consciously close the pre-set price line in the process of talking to the customer. In the end, you will unknowingly trade on the bottom line.
Some psychologists have said that 21 days form a habit. The same is true of sales. When we repeat such a quotation model every time, over time, we have formed a price curve in our mind, that is, the price system. In the end, we did not dare to report high prices and did not dare to compete with counterparts. Our customary price positioning was in our own internal settings. In fact, many customers do not know how much our market selling price is. They will only be accustomed to comparing the prices of similar products and will not be compared with the prices of many customers. This is especially true of individual rental customers and corporate buyers. .
2, price sensitivity, price sensitivity is usually a key to determine the deal or not or demand.
The higher the ratio of price changes and the base price, the higher the consumer's sensitivity, the lower the ratio, and the lower the consumer's price sensitivity. Weber-Feller's law shows that the customer's perception of price is more dependent on the relative value of the change than the absolute value. For example, for a bicycle, a price cut of $200 would be very attractive, and for a luxury car, a downgrade of $200 would not cause too much consumer attention. This law also has an important revelation: price changes within the upper and lower limits will not be noticed by consumers, and beyond this range consumers will be very sensitive to a little bit higher prices in the price cap than all of a sudden increase prices more easily accepted by customers, instead However, if the price is reduced below the lower limit at one time, it will be better than a small number of consecutive price reductions.
Therefore, this requires us to test the bottom line of the customer's price in the process of negotiating with the customer. The general quotation is based on the market reference price. It cannot exceed the appraisal price too much, nor can it approach the appraisal price too low.
Through the added value of products to reduce the customer's price sensitivity, such as the company's cultural philosophy, product unique advantages and service advantages, the company's development prospects, corporate branding and so on.
3. In the sales process of quotation trilogy, the price negotiation has always been carried through. Many people think that the quotation is one-off. In fact, the entire quotation process has several steps.
In fact, in the customer's mind, for every product purchased, there are two kinds of prices. One is the expected price, which is the price he wants to get, which is the customer's reserve price; the second is the rejection price, which is when the customer refuses to sell the product. Reported a price. So the sales price of the salesperson and the customer is generally balanced between the expected price and the rejection price. However, when an excellent salesperson initially contacts with the customer, he or she will not first quote, but will first obtain the customer's psychological information through mutual communication and testing, and spy on the customer's actual purchase intention and price bottom line. This will help the seller's offer, not because the customer's trust is too high, and it will not lose their own interests because they are too low.
The general price negotiation is divided into several time periods. The first initial contact, the first quotation, and the test of the customer's response, generally the customer will also tentatively ask you this time. Can the price be low? Avoid, for the first time quotation, the price must not be too many, generally controlled at 500 or so, if you can not withstand the customer's temptation, all of a sudden lower the price, the customer will have mistrust and suspicion on you, will inevitably lead to other brands Product consultation is even purchased at a price higher than yours.
The second quotation is the process of consulting and understanding for the first time. Customers usually do not decide on the same day. After a few days, the customer may re-negotiate with you, or you come to know the customer's response. Then the customer will talk to you more seriously. Price, at this time, you can make the price range and the asking price step not too fast. First, you must control the margin for the first time, then make a small allowance, or try to determine whether the customer can make a deal on the spot. I can submit a company application. If the customer says that they need to consult or bid before considering it, then you must use language skills to answer and at the same time leave room for the next negotiation. Without refusal or ambiguity, the customer usually acquiesces in your answer.
Three quotations, Asian transaction quotations. That is, there are many customers who will use the deal to deceive you at this time, saying that if the price is set, we can sign the contract, but most of the time, when we cannot accept the temptation to promise the price of the customer, the customer will often use other Reasons to delay the signing of the contract, such as waiting for the boss to come back, or explain the day, next time and so on. Once such a situation arises, most of us will lose orders. At this time, the customer is nothing more than to test your price line. Maybe use your price to suppress the prices of other brands in order to meet his own needs. A victim.
This is the real deal price. When we resist the temptation and trap of customers, do not be afraid of losing orders. We must have such an idea, not to sacrifice price competition, and not to promote sales at the expense of prices. We must clearly and firmly tell him, NO, or not.
Self-respected, self-possessed and confident sales staff will win the respect and trust of customers.
In this way, customers may be inclined to our brand instead. I believe this is our reserve price. However, our answer must have skills (examples). At the time of the final transaction, sometimes in order to satisfy the customer's vanity and face, we must also make timely concessions to give up a bit of price to facilitate the transaction and not be able to do the death. In that case, if some boss's self-esteem is hurt, Will achieve the opposite effect and lose orders.
However, from the time of the first quotation to the last transaction price, it is important to remember that the price should not be too large, and the speed of the price should not be too fast. It is necessary to maintain a gradual price, a small amount, and the price must be controlled naturally and reasonably. Must be within the acceptance level that allows the customer to generate trust. If the price is too large, the customer will doubt our price and profit, thus losing the trust of our brand and sales staff and affecting the transaction.
IV. Marketing Psychology The marketing process is also a process of psychological warfare. The process of negotiation with customers is a test of each other's psychological endurance. Whoever can't help but lower prices, whoever can't help conceding, whoever is the loser, and vice versa. Is the winner. We must cultivate a firm and usual mindset, and we must also consider the psychological changes of our customers. Quotations should take into account individual differences in consumption, such as age, product knowledge, consumer identities, consumer expectations for price changes, consumers’ perceptions of product value, consumers’ actual costs, and perceived opportunity costs.
Before negotiating with customers, we must try to figure out the preferences of the customers from the layout of the customer's office, so as to find opportunities for common language, increase the goodwill and affinity of the customers, and thus establish a better image for the customers themselves.
These psychological activities run through the entire marketing process, and some customers will hinder the goodwill and intimacy that you have established during the negotiation process, thus placing price on the secondary position that affects the factors of the transaction.
There is also a very important issue that requires our marketing staff to accurately grasp, that is the customer's suggestion. For example, the rebate of purchasers, which is called “gray marketing†in marketing, or “gray marketingâ€, is generally divided into “rebates after paying first, paying after rebates, and the customer directly deducts the rebate when paying. Payments and rebates are also provided.†I suggest that if the rebate amount is not significant, we should adopt a “pay back after rebate†approach, which can reduce many of the hassles and worries we have in the sales process and delivery process. Can guarantee smooth transactions and payment.
In short, the competition between products and enterprises will finally be reflected by prices. How can we control price competition, reflect non-price competition, grasp customer's perception of price, familiarize customers with purchasing psychology, and pass their own excellent marketing techniques? Use price levers to achieve marketing goals. We only use the product itself and marketing techniques to market consumers' consumer psychology, influence consumers' price perception and price sensitivity, and timely reduce or increase their perception and sensitivity to prices. This is a price strategy artistic. Show.
I have a vision that all of you here are able to drink coffee while smiling and negotiating while reciprocating and reciprocating while you are in a communicative atmosphere. Negotiation is a difficult process, but at the same time, it is a very With a sense of accomplishment, we want to achieve a deal in a pleasant exchange process and reach our goal.
I sum it up in one sentence: "Who is the leader of price, whoever is the king of success."
What is price?
Almost everyone thinks it's the price of a product, or how much it costs. In fact, this argument is just the most intuitive and shallowest thought. Price = price + character, from the product's point of view, character = quality + value, that is, price = price + quality + value, this is a complete product price meaning. Separately, it is quality that determines value, value determines price, and price positioning of each product is inseparable from these three aspects. Manufacturers also use this as a basis to conduct a reasonable price positioning on their products. As the saying goes: "A branch of money is a piece of goods." That's what it means.
Usually, there is a “pricing target†for the pricing of an enterprise. The pricing target is the purpose and standard that the enterprise consciously requires when setting prices for the products it produces or operates. It is the main factor that guides companies to make price decisions. The pricing target depends on the overall goals of the company. Companies in different industries, different companies in the same industry, and the same company may have different pricing targets under different periods and different market conditions.
There are three types of pricing targets for general companies: the goal is to obtain profits, to increase the market share, and to meet and prevent competition.
As a salesman, our responsibility is to sell products based on the company's pricing, rather than requiring companies to develop a price that is favorable to their own sales, and price setting should be based on the company’s goals.
A good salesman will do the price, not complain about the price. The price is to be able to better control the price, not to do low prices, not high prices, the price control ability is a direct reflection of a salesman sales level.
Second, price competition and non-price competition However, almost every salesperson will complain that the biggest problem in the sales process is price competition. In fact, there are two kinds of competition between peers, one is price competition, and the other is non-price competition. Price competition is a kind of competition in which customers get the same satisfaction through price reduction. Non-price competition is value competition. It refers to a kind of competition for customers to provide products and services that are better, more distinctive, or more adaptable to customer needs.
I used to talk about the concepts of "price marketing" and "value marketing." This is the core concept of price competition and non-price competition. If the two concepts are finely distinguished from the perspective of competition, non-price competition has the following characteristics compared to price competition:
1. Non-price competition is the development and sublimation of price competition. I have always felt that the best way to compete is to avoid competition. Therefore, the best way when we encounter price competition is to avoid price competition and do value competition. Case: I once met a customer who insisted on the reputation of Hangcha when purchasing a forklift. He thinks that Hangcha's price is famous and its price is low, but our price is high and its reputation is not great. After I listened to his words, I clearly learned that the type of forklift truck he is currently using is the old model of Hangcha, so I briefly introduced the obvious differences of our products to the customer based on this result. Accepted my product and thought it was worth the money.
2. Non-price competition is the change from single-factor competition to multi-factor competition. Low price competition is mainly due to low technical content and low added value of products, low corporate brand value, and weak corporate image strategy. Instead of price competition, it pays more attention to conveying the advantages of these areas to customers.
3, non-price competition to promote the sales approach from the marketing concept to the concept of marketing and then to the concept of competition. Sales promotion is the earliest model of sales. It is product-centered and deals with the products produced; marketing is customer-centered and meets customers’ consumer demands as an updated standard for products; the competitive concept is based on customers and competitors. The center must not only meet customer needs but also differentiate itself from competitors in product positioning, R&D, information communication, and marketing strategies in order to achieve maximum profitability.
4. Non-price competition focuses more on differentiated marketing. The diversity of customer needs will invariably produce a diversity of market demands. The difference strategy is the strategy of “I have no people, I have excellent people, and I have the best peopleâ€. From the marketing point of view, we must take advantage of our customers' personalities and needs to take the lead in avoiding weaknesses, take the initiative, attack new opportunities, and win surprises. Case: The same is the previous case. I use the advantages of our products to compare with the disadvantages of our competitors, highlighting our differences, and this is differentiated marketing.
Therefore, doing more value competition, less price competition will benefit our own development, and it will also benefit the improvement of the company's profits. This is a competition of skills and strategy, and it is also the highest expression of marketing standards.
We need to have the quality and quality of a BMW Mercedes camp instead of selling the low and low end of a van.
Third, the quotation strategy Of course, non-price competition is one of the most favorite and most desired forms of competition for each of us. However, price wars are sometimes still inevitable. Price warfare is one of the most primitive and common sales strategies. It has the characteristics of strong lethality and quickness. It is the most commonly used competitive method for most manufacturers or salesmen.
So, let's talk about the bidding strategy in the marketing process.
1, the formation of the price system.
One of the topics that we usually cannot avoid in the sales process or when communicating with people is the comparison of the price of a product with the price of a peer. Regardless of whether it is direct selling or acting, taking a three-ton forklift as an example, we have a price of 5.8, Hangzhou 59,000, a total of 57,500, and Longong 55,000. This series of data is our price benchmark in our own or in the minds of our customers. If it goes up or down, it represents a change in the price system. However, what I want to say is that this is just a price position, not a price system. The price system should be reflected in the end consumer market, with the majority of purchasers' transaction prices as the norm. This kind of system is not determined by the customer, nor is it decided by the factory, but is determined by the frontline salesperson who is directly involved in the sales.
In fact, the so-called price system is only formed by the psychological floor price of front-line sales personnel. For example, when we visit a client, we will presuppose a variety of issues and scenarios. The most conceived ones are the possible counter-offers and peers' quotations. We usually set a bottom line for ourselves in advance. How much, how much does the customer agree to trade, how much does the contract sign, and so on. Well, before the sale, a price curve has already formed in our hearts, so we will continue to induce or be induced by the customer to consciously close the pre-set price line in the process of talking to the customer. In the end, you will unknowingly trade on the bottom line.
Some psychologists have said that 21 days form a habit. The same is true of sales. When we repeat such a quotation model every time, over time, we have formed a price curve in our mind, that is, the price system. In the end, we did not dare to report high prices and did not dare to compete with counterparts. Our customary price positioning was in our own internal settings. In fact, many customers do not know how much our market selling price is. They will only be accustomed to comparing the prices of similar products and will not be compared with the prices of many customers. This is especially true of individual rental customers and corporate buyers. .
2, price sensitivity, price sensitivity is usually a key to determine the deal or not or demand.
The higher the ratio of price changes and the base price, the higher the consumer's sensitivity, the lower the ratio, and the lower the consumer's price sensitivity. Weber-Feller's law shows that the customer's perception of price is more dependent on the relative value of the change than the absolute value. For example, for a bicycle, a price cut of $200 would be very attractive, and for a luxury car, a downgrade of $200 would not cause too much consumer attention. This law also has an important revelation: price changes within the upper and lower limits will not be noticed by consumers, and beyond this range consumers will be very sensitive to a little bit higher prices in the price cap than all of a sudden increase prices more easily accepted by customers, instead However, if the price is reduced below the lower limit at one time, it will be better than a small number of consecutive price reductions.
Therefore, this requires us to test the bottom line of the customer's price in the process of negotiating with the customer. The general quotation is based on the market reference price. It cannot exceed the appraisal price too much, nor can it approach the appraisal price too low.
Through the added value of products to reduce the customer's price sensitivity, such as the company's cultural philosophy, product unique advantages and service advantages, the company's development prospects, corporate branding and so on.
3. In the sales process of quotation trilogy, the price negotiation has always been carried through. Many people think that the quotation is one-off. In fact, the entire quotation process has several steps.
In fact, in the customer's mind, for every product purchased, there are two kinds of prices. One is the expected price, which is the price he wants to get, which is the customer's reserve price; the second is the rejection price, which is when the customer refuses to sell the product. Reported a price. So the sales price of the salesperson and the customer is generally balanced between the expected price and the rejection price. However, when an excellent salesperson initially contacts with the customer, he or she will not first quote, but will first obtain the customer's psychological information through mutual communication and testing, and spy on the customer's actual purchase intention and price bottom line. This will help the seller's offer, not because the customer's trust is too high, and it will not lose their own interests because they are too low.
The general price negotiation is divided into several time periods. The first initial contact, the first quotation, and the test of the customer's response, generally the customer will also tentatively ask you this time. Can the price be low? Avoid, for the first time quotation, the price must not be too many, generally controlled at 500 or so, if you can not withstand the customer's temptation, all of a sudden lower the price, the customer will have mistrust and suspicion on you, will inevitably lead to other brands Product consultation is even purchased at a price higher than yours.
The second quotation is the process of consulting and understanding for the first time. Customers usually do not decide on the same day. After a few days, the customer may re-negotiate with you, or you come to know the customer's response. Then the customer will talk to you more seriously. Price, at this time, you can make the price range and the asking price step not too fast. First, you must control the margin for the first time, then make a small allowance, or try to determine whether the customer can make a deal on the spot. I can submit a company application. If the customer says that they need to consult or bid before considering it, then you must use language skills to answer and at the same time leave room for the next negotiation. Without refusal or ambiguity, the customer usually acquiesces in your answer.
Three quotations, Asian transaction quotations. That is, there are many customers who will use the deal to deceive you at this time, saying that if the price is set, we can sign the contract, but most of the time, when we cannot accept the temptation to promise the price of the customer, the customer will often use other Reasons to delay the signing of the contract, such as waiting for the boss to come back, or explain the day, next time and so on. Once such a situation arises, most of us will lose orders. At this time, the customer is nothing more than to test your price line. Maybe use your price to suppress the prices of other brands in order to meet his own needs. A victim.
This is the real deal price. When we resist the temptation and trap of customers, do not be afraid of losing orders. We must have such an idea, not to sacrifice price competition, and not to promote sales at the expense of prices. We must clearly and firmly tell him, NO, or not.
Self-respected, self-possessed and confident sales staff will win the respect and trust of customers.
In this way, customers may be inclined to our brand instead. I believe this is our reserve price. However, our answer must have skills (examples). At the time of the final transaction, sometimes in order to satisfy the customer's vanity and face, we must also make timely concessions to give up a bit of price to facilitate the transaction and not be able to do the death. In that case, if some boss's self-esteem is hurt, Will achieve the opposite effect and lose orders.
However, from the time of the first quotation to the last transaction price, it is important to remember that the price should not be too large, and the speed of the price should not be too fast. It is necessary to maintain a gradual price, a small amount, and the price must be controlled naturally and reasonably. Must be within the acceptance level that allows the customer to generate trust. If the price is too large, the customer will doubt our price and profit, thus losing the trust of our brand and sales staff and affecting the transaction.
IV. Marketing Psychology The marketing process is also a process of psychological warfare. The process of negotiation with customers is a test of each other's psychological endurance. Whoever can't help but lower prices, whoever can't help conceding, whoever is the loser, and vice versa. Is the winner. We must cultivate a firm and usual mindset, and we must also consider the psychological changes of our customers. Quotations should take into account individual differences in consumption, such as age, product knowledge, consumer identities, consumer expectations for price changes, consumers’ perceptions of product value, consumers’ actual costs, and perceived opportunity costs.
Before negotiating with customers, we must try to figure out the preferences of the customers from the layout of the customer's office, so as to find opportunities for common language, increase the goodwill and affinity of the customers, and thus establish a better image for the customers themselves.
These psychological activities run through the entire marketing process, and some customers will hinder the goodwill and intimacy that you have established during the negotiation process, thus placing price on the secondary position that affects the factors of the transaction.
There is also a very important issue that requires our marketing staff to accurately grasp, that is the customer's suggestion. For example, the rebate of purchasers, which is called “gray marketing†in marketing, or “gray marketingâ€, is generally divided into “rebates after paying first, paying after rebates, and the customer directly deducts the rebate when paying. Payments and rebates are also provided.†I suggest that if the rebate amount is not significant, we should adopt a “pay back after rebate†approach, which can reduce many of the hassles and worries we have in the sales process and delivery process. Can guarantee smooth transactions and payment.
In short, the competition between products and enterprises will finally be reflected by prices. How can we control price competition, reflect non-price competition, grasp customer's perception of price, familiarize customers with purchasing psychology, and pass their own excellent marketing techniques? Use price levers to achieve marketing goals. We only use the product itself and marketing techniques to market consumers' consumer psychology, influence consumers' price perception and price sensitivity, and timely reduce or increase their perception and sensitivity to prices. This is a price strategy artistic. Show.
I have a vision that all of you here are able to drink coffee while smiling and negotiating while reciprocating and reciprocating while you are in a communicative atmosphere. Negotiation is a difficult process, but at the same time, it is a very With a sense of accomplishment, we want to achieve a deal in a pleasant exchange process and reach our goal.
I sum it up in one sentence: "Who is the leader of price, whoever is the king of success."
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