Pricing Pressures are here to stay for the foreseeable future at least. Everyone has been affected by the economy. Everyone is watching their wallets. And while I never advocate selling on price(which isn’t selling, rather it is order taking) it’s more difficult right now to do the “value add” sale. But I suggest you stay with it. Here are some tips to help you with it.
1. Emphasize what is lost by taking the lower price of the competitor, rather than what more you have to offer. The cost of switching.
2. Get your sales team together and compare notes. Keep some sort of log of what competitors are quoting to whom
3. Practice handling price objections. Practice makes perfect.
4. When people ask price first, somehow try to grab information from the customer about the circumstances of the order so that you can offer other ways to reduce their cost without giving in on price. (Eliminating waste, using different materials, different installation methods).
5. And explore if you have to change your own cost structure to get back in the game.