Look, it can be off putting when a person cuts to the chase and asks for price? Especially since you normally need more information to give them an accurate quote.
What if you say a price that is too low and lose money! What if you say a price too high and you lose their interest?!
How should you reply in a retail meeting if a buyer asks you how much your physical product costs?
Here are 3 things to do to give a reply that gets sales:
1) TAKE IT AS A COMPLIMENT AND A BUYING SIGNAL!
Anyone asking for price is interested in buying and they are trying to figure out if your product will work for them before wasting any time.
However they may not be educated enough on the variations of your product OR the variables of their needs that could affect the price they would have to pay.
If they ask the question – it’s a good thing. They are interested in going forward! Now it’s your job to use this question and interest to drive the sale forward and solicit more information so you can give them a quote and close the deal!
DON’T DO THIS: “ If a buyer asks you price early in the conversation - don’t act offended AND don’t tell them “NO” and finish with a statement like “I can’t quote there are too many variables.”
2) PLAN A GOOD ALTERNATIVE ANSWER THAT BUILDS THEIR CONFIDENCE THEY CAN AFFORD YOU OR YOUR PRODUCT WILL SELL
Expect this question and think through a good answer that will allow that buyer to be re-assured your product will work for their budget and clientele.
Don’t feel pressure to give an exact number but do consider giving them a range and explaining what variables can affect the cost.
One great answer is to tell them the MSRP retail value of the price AND the price it’s currently selling at on AMAZON.COM or your website. This shows if it’s a good match for the consumers shopping their store (which is important – imagine the budget of shoppers in Dollar General vs. Nordstrom’s). It also gives them price comparison with the competition because if they are carrying similar competing products and they succeed in that price range, they will be able to see if you will make sense on their shelf among other products.
If your product is exceptionally more expensive at retail – be prepared to IMMEDIATELY explain 1-3 points of difference that justify this higher cost. Then give them an example of why consumers will still buy at this price – it could be increased brand perception in the market. It could be a superior natural ingredient callout. Or you can point out your product is the #1 seller on Amazon in this category. This is proof that people want your product and are willing to pay for it.
BEST PRACTICES: Turn the question “HOW MUCH?” into an opportunity to keep the conversation going by saying YES I’ll TELL YOU LATER! and asking questions so you can figure out what cost to give.
3) ASK QUESTIONS TO GET THE INFO YOU NEED TO SEND A QUOTE
Your next job is to educate your consumer on why your product is good and educate yourself on the costs you will incur delivering the product for them.
Here’s an example of the immediate QUESTIONS to get more information so you can quote:
What types of margins do you need to carry in your store?
What quantities do you typically move through in a month on similar products?
How large would your 1storder possibly be and how large annually when it succeeds?
Do you have any shelf or slotting fees we should consider?
What percentage should we allocate for billbacks that you typically see in your store?
(if it’s private label) Who pays for packaging artwork and what are the typical rates?
Do you prefer to pick up or have delivered pricing?
Are there any other unique elements of working with you that might affect our costs in getting you product?
FOR EXAMPLE: Here’s a great YES reply – “Well this product’s MSRP is $12.99, which is what you’ll see in most retail chains and on our website. We’re trending #1 in Kroger this month. We can send you custom costing in a few days after this meeting. What are the best sellers in our category retailing at? What margins do you need to have for things to work in your store?”
Being asked the cost early in a conversation is a good sign the retail buyer is interested but unsure. This is the moment of victory to turn their doubt into conviction they should move forward. Successfully do this by giving a YES type answer, provide data that assures you’re your product will work for them and ask questions so you can answer accurately in your follow-up. The outcome will be better conversations with buyers which lead to sales AND increased data and confidence for your team when building pricing
YOUR NEXT STEPS:
Write out a quick template answer to this question that makes sense for your product:
Where we’re succeeding/Why this price makes sense
Questions so you can follow-up with a cost
If you want to be a student of sales here is more information.
This principle is called YES AND MAKE-IT-YOUR-OWNand I’ve taken it from the art of IMPROV COMEDY! Imagine the performance stage is just like life. If anyone brings you a problem, question or action in life… never reply “no!” because the scene and momentum stops! The actor or in our case retail buyer won’t no where to go next. You will loose comedy if you’re in a performance AND you will loose a sale in a buyer meeting.
Always say “YES!” and then respond and play off of what they said, adding new information to the scene to keep it moving. Questions that naturally follow what the buyer just said is the best way to keep the conversation moving in the positive, interesting and life changing direction towards a purchase order.
The next time a retail buyer says anything off putting, don’t stop in your tracks. Instead say YES… and then MAKE IT YOUR OWN by asking them questions to better understand where they are coming from. The outcome will be good sales meetings and better rapport with your buyer.
Want more information on acing your next retail buyer meeting? This point is one of 5 that we will teach in our UPCOMING LIVE WEBINAR: 5 Steps To Acing Your Next Retail Buyer Meeting. Click here to RSVP and attend: https://www.bigmarker.com/pearl-resourcing1/5-Steps-To-Acing-Your-Next-Retail-Buyer-Meeting
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