Attentions Sales People -- Low Prices Are Not A Good Selling Point

Posted from Royal Oak, Michigan--

I read The Wal-Mart Effect by Charles Fishman a while back, but I can't stop thinking about this important book.  In fact, I just posted a review on Amazon.

Why am I still so interested in the Fishman book?  As a sales trainer,  I'm especially aware of how American commerce is strongly attracted to low price points. 

I teach sale people to never talk about price until they've created value by talking about everything else, especially product benefits.  Even when a potential customer objects to a "high" price, a seller's goal is not to give up dollars, but to re-establish value. 

Promoting a low price is not in your customer's best interest because a lower price is almost always a representation of lower value.  Promoting a low price is not in your company's best interest because lower prices erode margins.  Selling on price is not in the seller's best interest because it causes laziness and apathy as the seller shifts from promoting value to scoring a commodity sale. 

Price is important, but it is not and never will be the most important factor of a business transaction.  Volkswagen will never put Cadillac out of business.