A professional coach explains how to handle clients who ask for price matching by shifting the focus to value. He introduces the 'selling the gap' concept, where you ask the client to identify why they would prefer your service over a cheaper competitor to justify your higher fee.
Stop Lowering Your Prices: How to Sell the Gap
A professional coach explains how to handle clients who ask for price matching by shifting the focus to value. He introduces the 'selling the gap' concept, where you ask the client to identify why they would prefer your service over a cheaper competitor to justify your higher fee.
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If somebody says to you that Your price is 1,000 and there's a competitor down the street that is 800
If somebody says to you that Your price is 1,000 and there's a competitor down the street that is 800, and they want you to match the price, and you say, look, if I can do it for 800, then will you give us the business? And they say yes. That doesn't mean you have to match the price. What it means is you found out that if all things were equal, they'd rather do business with you. Now, that must mean that all things are not equal. So if you say, if I can do it for 800, then will you do it? Then will you give us the business? And they say yes. You then say, so what is it about us and our work that means you'd rather work with us? If the price was the same and you want to hope they can tell you, and if they can say, well, it's this and it's this and it's this and it's this and it's this, and they can give you a list, you can then respond by saying, can you see why we're worth the 200 difference? Then, my friends, is called selling the gap. That's about us not trying to sell a 1000 offer versus an 800 offer. That's about us selling the $200 difference.
- 01The Dilemma
Present a scenario where a client or person asks you to lower your standards or price to match a competitor.
- 02The Instinctive Response
Describe the common, but weak, reaction people usually have to this pressure.
- 03The Reframe
Explain the hidden meaning behind the person's 'Yes' that most people miss.
- 04The Logic Bridge
A short sentence that highlights the obvious logical conclusion.
- 05The Tactical Question
Propose a specific question to ask the other person to get them to reveal why they prefer you.
- 06The Value Extraction
Describe the list of benefits the other person will start listing.
- 07The Closing Logic
Show the viewer how to turn that list back into a justification for the higher value.
- 08The Framework Reveal
Give the technique a name and summarize the core philosophy.