Recently I overheard the following conversation between a guy who wanted to sell his house and the Realtor who was attempting to get the listing.

Buyer/Sales Professional Dialogue
Buyer: “I don’t want to sell the house myself. I don’t have the time to handle all the details and don’t know squat about how to sell a home.”

Sales Professional: “That’s where I come in. Once I become the listing agent, I’ll handle everything required to sell the house. You’re only involved when there are critical decisions to be made.”

Buyer: “But I’m not going to pay you the standard 6% Realtor commission. No one pays that much anymore.”

Sales Professional: “There are Realtors who will list your house for less than 6%, but they won’t make the process as easy for you as I will. I know how to handle all the details and I know how to sell a home like this in a short period of time. When this transaction is completed, you’ll realize my 6% fee was a good investment. As much as I would like to get this listing, I want you to know that I have never had to discount my commission.”

The Sales Professional Who Believed In Herself
I wasn’t able to hear the remainder of their conversation (dang it), but I could tell from their body language that the Realtor was going to get this guy’s listing. I wanted to jump and cheer for the sales professional as I stood there pretending not to listen to their conversation. In only a few words, she had successfully defended her price.

6 Sales Tips For Defending Your Sales Price
The Realtor provided all the essential principles we need to defend our price.

1. Don’t flinch or blink when it comes to pricing. Buyers look for these cues when negotiating.
2. Remind the buyer of what you are specifically going to do for them. We’re not talking about abstract “value added selling” here. We’re talking about real world “here are the problems I’m going to remove from your life” selling.
3. When it comes to pricing, never buy into the “no one charges this much” line. It’s not true and the buyer is blowing hot air. Buyers look for our reactions when they make comments like these. Stand firm.
4. Remind the buyer this is a quid pro quo transaction. He or she will be getting as much or more from you as you get from them.
5. Readily acknowledge there are competitors that will sell for less than you will. Let buyers know this is not an issue for you because you believe in yourself and what you can do for them. Bringing this issue out in the open virtually removes this as a negotiating tactic for the buyer.
6. Let the buyer know, in a diplomatic way, that you want his or her business, but you are standing firm on your price.

Sales Blog Wrap Up
This isn’t a sales blog post about “you get what you pay for” or “value added selling.” It’s a post about believing in yourself and what you can do to help your customers. When you have that belief, being confident about your price comes naturally.

©2010 Scott R. Sheaffer

Related posts:

1. Impotent Price Quoting: Sales Tips on Fixing the Dysfunction
2. Has Price Quoting Made You A One-Trick Pony?
3. How to handle: “Tell me your price right now.”

Tags: assertive, competition, negotiation, objections, pricing

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