Comments on: How to sell against cheaper competitors

By: The marketing power of perception

The marketing power of perception — Fri, 22 Jan 2010 14:45:45 +0000

[...] example, many accountants or CPA’s find themselves selling their services based on their fees – because the common (incorrect) perception is that all qualified accountants provide a [...]

By: Tony Bonanno

Tony Bonanno — Thu, 06 Aug 2009 03:08:28 +0000

I’m shocked that any consultant would quote a fee in their “marketing”. I rarely ever find myself in a competitive situation with other consultants but when I do, I am never the cheapest and always win the client.

The main reason is that I go to great lengths to demonstrate that I fully understand the problem to be resolved (and much more in most cases) and therefore price is never an issue.

Of course, that is an over-simplification of what goes into the process of winning business but I think everyone will get the general idea.

By: Jim Connolly

Jim Connolly — Tue, 04 Aug 2009 19:46:05 +0000

Danielle,

Thanks for letting me know. It’s always great when they feature my work.

Thanks again Danielle

By: Danielle Keister

Danielle Keister — Tue, 04 Aug 2009 16:57:28 +0000

“Get to the Point” ezine from MarketingProfs:

http://www.marketingprofs.com/small-business/index.asp?nlid=1269&cd=dmo121&adref=NsbT189

By: Jim Connolly

Jim Connolly — Tue, 04 Aug 2009 16:45:12 +0000

Okay – thanks for the feedback anyway Danielle. By the way – how did you find this post? It’s had a stack of traffic over the past hour or two – I think it must have been in a well-read newsletter?

By: Danielle Keister

Danielle Keister — Tue, 04 Aug 2009 16:28:24 +0000

I think there are folks who may construe from the example that they should be talking about how much faster they work. That’s not necessarily or inherently the value and they run the risk of creating unrealistic/unsustainable expectations. That the issue I have with the example.

I definitely agree with you about not simply quoting fees. It’s always our job as the provider to provide proper context and understanding so that when it’s the appropriate time to discuss fees, they make sense to the customer.

By: Jim Connolly

Jim Connolly — Tue, 04 Aug 2009 16:14:38 +0000

Danielle,

Thanks for the comment.

You are disagreeing with the example; yet your comment agrees with my point – NOT to just quote a fee but to show the value.

You always focus on value. Quoting fees is pointless, unless someone knows what they are paying for (the value).

By: Danielle

Danielle — Tue, 04 Aug 2009 16:07:37 +0000

I think the advice is good, the example not so much.

People who bill by the hour end up making less money the faster they work.

The point is not to focus clients on price. The goal is to focus them on values like quality and return on investment and how their business or marketing or operating conditions, whathaveyou, are improved.

By: Jim Connolly

Jim Connolly — Tue, 04 Aug 2009 15:22:55 +0000

Hello Kirsti,
Thanks for the comment. It’s too easy to blame the consumer for being fee sensitive; when service providers are creating a problems for all looking identical. When price is all a client has to tell providers apart, they will use it.

By: Kirsti Scott

Kirsti Scott — Tue, 04 Aug 2009 15:17:51 +0000

It always goes back to the old adage: You get what you pay for. And, rarely does the item that cost less end up being superior to the higher priced one. As you said, it’s just important to clarify why you’re worth the higher price. Nice article, Jim.