How Offering Three ‘Virtual Products’ Can Help Maintain Profitable Pricing
“Overcome pricing objections by offering three ‘virtual products’ for which your customers and prospects will gladly pay a premium,” Marka explained. “The first is convenience. Our prospects want the comfort of not having to worry about their project when it’s in our hands. In the B2B world, that convenience frees up their time to focus on their own core competencies. When we sell convenience, we’ll find plenty of willing buyers.”
“Makes sense,” Zoot agreed.
“Another virtual product is safety,” Marka continued. “Every day, fire buyers encounter fear in their business and personal lives: Fear of blown deadlines, fear of dealing with vendors and customers, fear of losing a job...the list goes on. By positioning our fire solutions as the antidote to each prospect’s fear, we’ll establish ourselves as the safe choice. Fire vendors that offer safety command more than bottom-barrel prices.”
“Good advice,” Zoot said. “And the last virtual product?”
“Peace of mind. When we sell convenience and safety to our prospects, we’re making promises,” Marka noted. “Now it’s up to us to deliver! Kept promises are the peace of mind our prospects simply can’t put a price on. In the fire and torch-lighting industry, the key to success is the ability to forge and maintain long-lasting business relationships. Companies that continually prove their value by keeping their promises will have a roster of happy clients that see no reason to do business with anyone else.”
Zoot wiped the sweat from his forehead. “You’ve convinced me. It’s funny...I think I’ll sleep a little easier tonight knowing that removing a buyer’s fear can be all it takes to alleviate pricing pressures.”
Today’s FIRE! Point
Resist the temptation to become the discounter or cost-cutter in your industry. Discounting is rarely a sustainable, long-term pricing strategy and discounters tend to be flash-in-the-pan businesses that disappear overnight. When you offer convenience, safety and peace of mind to your customers, pricing objections will tend to melt away.